May 2014

OWNERSHIP

TELECOMMUNICATIONS CONSOLIDATION
[SOURCE: Wall Street Journal, AUTHOR: Ryan Knutson, Thomas Gryta, Brent Kendall]
The communications industry long has promised a future where wireless service, video and the Internet are offered in one convenient package. Three huge possible deals now are bringing that future into view. 1) Cellphone and Internet provider AT&T is looking to buy satellite company DirecTV. 2) Cable and Internet provider Comcast is considering offering mobile-phone service over Wi-Fi if its planned $45 billion merger with Time Warner Cable is approved. And 3) cellphone company Sprint says it could provide home Internet connections over wireless if it is allowed to buy smaller rival T-Mobile US. In theory, the deals would usher in an era in which consumers would get new, flexible options to be entertained and communicate wherever and however they choose. But the path to that idealized world is perilous, requiring that regulators approve mergers that would create still-bigger companies in industries where Americans already have few choices. There are two possible outcomes, says Blair Levin, a former Federal Communications Commission chief of staff who helped draft the agency's road map for increasing broadband access. In one, the companies bulk up and start competing aggressively, creating exciting new services. In the other, new competition from technologies such as Internet broadband via wireless or mobile-phone service via Wi-Fi don't pan out, giving the biggest legacy companies more pricing power than ever.
benton.org/node/182803 | Wall Street Journal
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INTERNET/BROADBAND

MOZILLA HAS A PLAN TO SAVE NTWORK NEUTRALITY
[SOURCE: National Journal, AUTHOR: Brendan Sasso]
Mozilla is urging the Federal Communications Commission to enact new rules to bar Internet service providers from charging websites for faster service. In a filing with the FCC, the nonprofit foundation that makes the Firefox Web browser outlined a new legal path to enact tough network-neutrality regulations. Chris Riley, a senior policy engineer for Mozilla, said the group's proposal is "grounded in a modern understanding of technology and markets" and would "help ensure that the Internet continues to be an innovative and open platform." The filing introduces a new angle to the debate over regulation of Internet access, but it's unclear how interested the FCC will be in Mozilla's proposal. The FCC would classify Internet access as a Title II telecommunications service but only for the relationship between websites and ISPs, not the relationship between consumers and ISPs, the group said. The proposal would allow the FCC to bar ISPs from charging websites for fast lanes while still using the current light regulatory regime for other Internet issues that affect consumers, the group said. Mozilla argued that its proposal is not "reclassification" because the FCC has never explicitly defined the relationship between ISPs and Web companies. "With our proposal, the FCC would be able to shift its attention away from authority questions once and for all, and focus instead on adopting clear rules prohibiting blocking and discrimination online," Riley wrote.
benton.org/node/182789 | National Journal | Mozilla | GigaOm | arstechnica | The Hill
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LIFE IN THE SLOW LANE
[SOURCE: Benton Foundation, AUTHOR: Edyael Casaperalta]
[Commentary] Please don’t break the Internet before rural America gets it. What does network neutrality mean for rural folk, whether online or trying to get online? What does it mean for rural businesses and the economy of rural areas? Network neutrality, or “net neutrality” for short, is the principle that the Internet is a neutral playing field where all information gets treated equally, no information gets preferential treatment and no player is blocked. As my grandma would say, “O todos coludos, o todos rabones,” which roughly translates to “Either we all wear tails, or we all get our tails cut.” Even if you are on the wrong side of the digital divide, net neutrality affects you. The way to solve this problem and, coincidentally, to close the digital divide, is to reclassify Internet service as a Title II service. Translation: The FCC should treat the Internet as a common carrier service like telephone. The change will allow the FCC to regulate Internet providers so they don’t behave badly in the first place, instead of waiting for them to misbehave and then taking corrective action. Reclassification allows the commission to enforce net neutrality and flat-out prohibit the creation of faster lanes. Reclassifying Internet under Title II would also mean that every person in our country would have the right to an Internet connection no matter where they live. Whoa! That means that an Internet provider could not cherry-pick areas to serve, which consistently leaves rural areas with bad or no service. Title II reclassification would give the FCC the legal authority to ensure that Internet providers put people, not just profits, into their equations. So, please don’t break the Internet before rural gets it. We don’t want a hand-me-down Internet from our connected brothers and sisters.
http://benton.org/node/182744
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WHO'S FIGHTING TO SAVE THE INTERNET NOW?
[SOURCE: The Verge, AUTHOR: Adi Robertson]
After years of pressure from Internet service providers, network neutrality is under threat by the Federal Communications Commission itself. In a letter, Sen Al Franken (D-MN) warned that the FCC’s latest network neutrality proposal "would not preserve the Open Internet -- it would destroy it." His language is reminiscent of the response to another "Internet-destroying" policy: SOPA, the anti-piracy bill that mobilized perhaps the most effective online protest of all time. Like SOPA, these proposed Open Internet rules tackle an issue that’s near to the hearts of both Internet denizens and tech companies. And as the FCC plans to officially consider the rules on May 15th, they’re figuring out how to mobilize the same kind of opposition. Though the company hasn’t confirmed anything on the record, sources say that outspoken net neutrality proponent Netflix has privately brought concerns to the FCC, and that it, Google, and other major players are quietly planning an accompanying publicity blitz. Other groups have been more open. Mozilla, a prominent participant in the 2012 anti-SOPA blackout, has filed a petition with the FCC, asking it to regulate parts of Internet service providers’ business under common carrier laws. Mozilla senior policy engineer Chris Riley sees the FCC’s current proposal as the worst of both worlds: by allowing "commercially reasonable" discrimination, it’s allowing ISPs to undermine net neutrality, and by requiring a baseline level of service, it could be stretching beyond the limited authority courts have given it. "I’m really worried that what the FCC would do now is both lose in court and fail to protect net neutrality," he says. If it fails, net neutrality supporters predict dire consequences. Reddit, currently one of the 25 most popular sites in the US, also joined the SOPA blackout, and it’s planning a site-wide online protest on May 15th. Nothing is locked down, but he hopes some of the politicians who have spoken out against the proposal will make appearances on Reddit -- a statement by Sen Bernie Sanders (I-VT) made it to the top of the site.
benton.org/node/182782 | Verge, The
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LEVEL 3 ACCUSES FIVE UNNAMED US ISPS OF ABUSING THEIR MARKET POWER IN PEERING
[SOURCE: GigaOm, AUTHOR: Stacey Higginbotham]
Level 3 Communications, a company that provides bandwidth for a wide variety of customers trying to get content from point A to point B on the Internet, just accused five US Internet service providers (ISPs) and one European ISP of using their market power to interfere with how traffic flows from Level 3 onto the ISPs’ last-mile network. The result is that customers of those ISPs experience degraded quality for services going over Level 3′s network. This is a so-called peering problem. The issue is that at the interconnection points where Netflix traffic attempts to enter the last-mile ISP’s network, there isn’t enough capacity. Usually, when that happens, the transit provider or the content provider negotiate to add more capacity by opening up more ports. However, in recent months Level 3, Netflix and Cogent have all gone public accusing some ISPs of keeping those ports congested while trying to charge above-market rates for direct interconnection. Netflix has signed such a direct interconnection agreement with both Comcast and Verizon. But it isn’t happy about it and accuses the ISPs of abusing their market power to extract payments from content companies trying to serve the last mile.
benton.org/node/182778 | GigaOm | ars technica
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CAN TELEMEDICINE HELP COMMUNITIES JUSTIFY BETTER BROADBAND?
[SOURCE: GigaOm, AUTHOR: Craig Settles]
[Commentary] Telemedicine -- using telecommunications to enhance medical and healthcare delivery -- is lauded for advancing the public good, improving the quality of life and transforming the patient/doctor relationship for the betterment of both. Broadband-driven telemedicine also impacts economic development. But are communities prepared to ride this particular technology wave to better economic health? The International Economic Development Council (IEDC) indicated in a survey that 43 percent of its members think broadband-enabled medical and healthcare services are a primary economic issue for them. And 28 percent see these services indirectly impacting their local economy. Contrary to conventional wisdom that rural communities have the greater need for telemedicine services, survey results show urban and suburban communities are just as likely rural ones to place high economic value on telemedicine. But only in a third of the cases do respondents say their communities’ current available broadband speeds are sufficient to attract new physicians, enable video-delivered health services and attract medical research projects. Similar percentages say the current service is adequate, but could be better, indicating that these speeds will be less useful as telemedicine apps increase in number and capacity requirements. [Settles is a consultant who helps organizations develop broadband strategies, host of radio talk show Gigabit Nation and a broadband industry analyst]
benton.org/node/182771 | GigaOm
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WIRELESS/SPECTRUM

SUPREMES TO WEIGH IN ON CELL TOWER CITING ISSUE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
In a decision that could help ease the way for telecom operators to site their towers and boost broadband service, the Supreme Court has agreed to hear an appeal of a case (T-Mobile South v. Roswell, GA) involving how a city has to justify its denial of a tower-siting permit, a case which has split federal circuits. T-Mobile had challenged an Eleventh Circuit ruling -- overturning a district court -- that held that the city of Roswell, which had denied a tower placement, only had to notify the operator in writing of the denial and provide access to the administrative record of the decision, but did not have to explain how the decision was made. But various other federal circuits have read the law as requiring the city to provide a decision separate from the administrative record and at least some explanation of the reason for the denial. That way, if there is a challenge in court, there will be a judicial matter at hand to wheigh whether the evidence supports that reasoning. The Supremes have now agreed to try and resolve that split.
benton.org/node/182784 | Broadcasting&Cable
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TELEVISION/RADIO

KNOCK KNOCK. WHO'S THERE? THE FCC AND AN $89,200 FINE.
[SOURCE: CommLawBlog, AUTHOR: Christine Reilly]
[Commentary] The Federal Communications Commission just gave broadcasters another reason to answer the door graciously. The FCC whacked a Pennsylvania Class A Television broadcaster with an $89,200 Notice of Apparent Liability (NAL) for refusing to allow FCC inspectors to inspect the station's facilities, not just once, but on three different occasions. It is rare to see the FCC show its irritation in an NAL, but the language used by the FCC in this particular NAL leaves no doubt that the Commission was not happy with the licensee, particularly with what the FCC believed was blatant disregard for its authority. As the FCC put it, "this is simply unacceptable." In hindsight, it seems very unlikely that, even had the station been in a state of disarray or total chaos, any potential fine from the FCC could have exceeded the nearly $90,000 fine the licensee instead received for refusing access. The obvious lesson learned here if is that if the FCC comes knocking at your door, let them in.
benton.org/node/182776 | CommLawBlog
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REMARKS OF FCC COMMISSIONER AJIT PAI BEFORE THE PENNSYLVANIA ASSOCIATION OF BROADCASTERS
[SOURCE: Federal Communications Commission, AUTHOR: FCC Commissioner Ajit Pai]
Broadcasters and the Federal Communications Commission should have a good relationship. Unfortunately, the relationship between broadcasters and the FCC has become strained of late. I wanted to discuss with you four areas where I think we can make things better: recognizing broadcasting’s value, treating broadcasters fairly in the upcoming incentive auction, revitalizing AM radio, and beginning to reform our media ownership rules.
benton.org/node/182772 | Federal Communications Commission
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ADVERTISING

ADS FOR PBS
[SOURCE: New York Times, AUTHOR: Stuart Elliott]
For the first time, PBS is signaling Madison Avenue how interested it is to sell sponsorships and other types of advertising for the online video clips and series that are published through its PBS Digital Studios division. But marketers hoping to discuss bringing to PBS Digital Studios the more overt commercial elements that are familiar to viewers of online video — among them, mainstays of branded entertainment like placing products in scenes and weaving brands into plot lines — may find Oscar the Grouch on the other end of the telephone. As eager as the executives are for advertising revenue, they acknowledge the pitfalls of excessive commercialization.
benton.org/node/182801 | New York Times
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FACEBOOK VIDEO ADS
[SOURCE: Wall Street Journal, AUTHOR: Reed Albergotti]
A video ad on Facebook will cost advertisers about $1 million a day, but the social network won't accept a check from just anyone. Just a small group of brands was invited to submit concepts, which will have to be approved by Facebook Inc.'s creative team. Then the ads will be shown to viewers, who will rate them based partly on how "meaningful" they are, the company said. After the ads make it to Facebook, they will face another hurdle: They will play without sound, and the site's users will be able to scroll past them without watching. The gantlet is designed to avoid offending Facebook users. In the process, Facebook risks offending potential advertisers.
benton.org/node/182800 | Wall Street Journal
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DIVERSITY

FEMALE FILMMAKERS
[SOURCE: New York Times, AUTHOR: Cara Buckley]
In case there was any doubt, women fare better when they go independent. That is the latest finding from the Center for the Study of Women in Television and Film, which reported that the percentage of women occupying crucial filmmaking roles is greater in independent films compared with top-grossing movies. Women accounted for 26 percent of such roles, which include directing, writing and producing, in feature-length American independent films that screened at festivals in the last year. That percentage remained even with a previous study in 2011-12. By contrast, women comprised just 16 percent of the important behind-the-scenes roles in 2013’s top-grossing domestic films. Breaking the numbers down further, the study found that women made up 28 percent of documentary directors and 18 percent of directors working on independent narrative features. Meanwhile, women directed a mere 6 percent of last year’s top-grossing films.
benton.org/node/182798 | New York Times
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GOVERNMENT & COMMUNICATIONS

HOUSE TO ADVANCE BILL TO END MASS NSA SURVEILLANCE
[SOURCE: National Journal, AUTHOR: Dustin Volz]
A bill that would effectively end one of the National Security Agency's most controversial spy programs is finally getting its day in congressional court. The House Judiciary Committee will hold a markup of an amended version of the USA Freedom Act, a surprising and sudden move that would essentially nullify the government's ability to collect bulk metadata of Americans' phone records. The maneuver may also be a counter to plans the House Intelligence Committee has to push forward a competing bill that privacy advocates say would not go far enough to curb the government's sweeping surveillance programs. The Freedom Act is sponsored by Rep Jim Sensenbrenner (R-WI), the one-time mastermind behind the post-9/11 Patriot Act, from which both the Obama and Bush Administrations have derived much of the legal authority for their surveillance programs. Rep Sensenbrenner has vocally condemned NSA spying since Edward Snowden's leaks surfaced last June. The bill has long been supported by privacy and civil-liberties groups who view it as the best legislative reform package in Congress.
benton.org/node/182779 | National Journal | The Hill
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AT&T AND VERIZON GOT GOVERNMENT DATA REQUESTS ONCE EVERY 60 SECONDS LAST YEAR. AND THAT’S PROBABLY LOWBALLING IT.
[SOURCE: Washington Post, AUTHOR: Brian Fung]
A University of Ottawa law professor got a set of documents from the Canadian government showing that law enforcement agencies are asking the country's telecom operators for subscriber information every 27 seconds. That's a staggering amount, but how does it compare to the United States, where authorities are willing to record all of the calls that take place in a foreign country? To get a sense, I decided to take a look back at the transparency reports from major US phone companies. In 2013, AT&T and Verizon together received more than one request every 60 seconds. Is that a lot? Depends. It's not as high as the rate cited in Canada. But we're also dealing with an incomplete data set here. In its first-ever transparency report, AT&T reported receiving 301,816 requests for user data from state, local and federal authorities. Verizon's inaugural transparency report, meanwhile, shows it got 321,545. That's the equivalent of 1.2 requests every minute.
benton.org/node/182787 | Washington Post
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THIS AT&T PROPOSAL WOULD END THE PRESIDENT’S ABILITY TO MAKE PRIORITY PHONE CALLS IN A CRISIS
[SOURCE: Washington Post, AUTHOR: Brian Fung]
The Department of Homeland Security says an AT&T plan to test new network technology would degrade a special telephone service reserved for national emergencies and presidential communications. If implemented, the plan would hamper the ability of first responders and public officials to respond to a crisis of the magnitude of Hurricane Sandy or even 9/11, according to DHS. The special service, known as the Government Emergency Telecommunications Service (GETS), allows the president or any high-level official with a secret PIN to dial a unique phone number and demand priority access to the nation's telephone network. GETS calls automatically take precedence over all other phone traffic, and can even overcome busy tones that an ordinary caller might face during periods of congestion. About one-tenth of one percent of people in the United States have access to this system -- and AT&T is proposing to strip that priority status from a key stage of the calls. "If you're not applying priority to the end-to-end call, then it's a straightforward position to say you're putting GETS at risk," said Jason Healey, a security expert at the Washington-based Atlantic Council and a former George W. Bush administration official who oversaw the GETS program.
benton.org/node/182781 | Washington Post
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STORIES FROM ABROAD

ITU RELEASES 2014 ICT FIGURES
[SOURCE: International Telecommunication Union, AUTHOR: Press release]
New figures released by International Telecommunication Union indicate that, by end 2014, there will be almost 3 billion Internet users, two-thirds of them coming from the developing world, and that the number of mobile-broadband subscriptions will reach 2.3 billion globally. Fifty-five per cent of these subscriptions are expected to be in the developing world.
Fixed-telephone subscriptions continue to decline: Results show that fixed-telephone penetration has been declining for the past five years. By end 2014, there will be about 100 million fewer fixed-telephone subscriptions than in 2009.
Mobile-cellular subscriptions to hit nearly 7 billion: Mobile-cellular subscriptions will reach almost 7 billion by end 2014, and 3.6 billion of these will be in the Asia-Pacific region. The increase is mostly due to growth in the developing world where mobile-cellular subscriptions will account for 78 percent of the world’s total.
Growth in fixed-broadband penetration slowing in developing countries: By end 2014, fixed-broadband penetration will have reached almost 10 percent globally.
Mobile-broadband subscriptions will reach 2.3 billion globally by the end of 2014: Globally, mobile-broadband penetration will reach 32 percent by end 2014; in developed countries, mobile-broadband penetration will reach 84 per cent, a level four times as high as in developing countries (21%). The number of mobile-broadband subscriptions will reach 2.3 billion globally and 55 percent of all mobile-broadband subscriptions are expected to be in the developing world.
Home Internet access approaches saturation levels in developed countries: By end 2014, 44 per cent of the world’s households will have Internet access. Close to one-third (31%) of households in developing countries will be connected to the Internet, compared with 78 per cent in developed countries. The analysis shows that household Internet access is approaching saturation levels in developed countries.
Three billion people will use the Internet by the end of 2014: By end 2014, the number of Internet users globally will have reached almost 3 billion. Two-thirds of the world’s Internet users are from the developing world. This corresponds to an Internet-user penetration of 40 per cent globally, 78 per cent in developed countries and 32 per cent in developing countries. More than 90 per cent of the people who are not yet using the Internet are from the developing world.
benton.org/node/182764 | International Telecommunication Union
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PAKISTANI MILITARY AND JOURNALISM
[SOURCE: Wall Street Journal, AUTHOR: Saeed Shah]
Media mogul Mir Shakil-ur-Rahman has played an outsized role in shaping Pakistan's politics in recent years. Now, his empire is struggling for survival after colliding with the country's most powerful institution: the military establishment. The clash was sparked by the shooting of Hamid Mir, the star journalist of Rahman's Geo TV channel. Geo reporters alleged on broadcasts that the military's main spy agency was behind the attack. The military angrily denied the claim, and is now pushing to shut the network. On May 6, Pakistan's media regulator will begin hearings on whether to close the channel. The controversy is reversing fragile gains made by increasingly assertive Pakistani media over the past decade, analysts and media professionals say.
benton.org/node/182797 | Wall Street Journal
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May 2014

May 6, 2014 (Brewing Telecom Deals)

Brewing Telecom Deals Bring Long-Promised Future Into View

After Apple-Samsung Trial, Jury Weighs Google's Influence

PBS Seeks Web Sponsors, but Big Bird Still Won’t Sing Jingles

Brands Face Tough Screening for Facebook Video Ads

Smartphone 'kill switch' bill will have another shot in the California Senate on May 8

For Female Filmmakers, Indies Provide More Work Than Studios, Study Finds

Pakistani Military Seeks Shutdown of Leading TV News Channel Geo