October 23, 2014 (Setting the Chicken Little ISPs Straight)
BENTON'S COMMUNICATIONS-RELATED HEADLINES for THURSDAY, OCTOBER 23, 2014
The Impact of Net Neutrality on Global Internet Freedom and Human Rights on today’s agenda http://benton.org/calendar/2014-10-23/
INTERNET/BROADBAND
Setting the Chicken Little ISPs Straight - Michael Copps op-ed
Are the political winds shifting in favor of net neutrality? - Michael Hiltzik analysis
Rep Eshoo: Reclassify broadband for network neutrality
The right wasn't always opposed to regulations protecting online innovation - Timothy Lee analysis
FCC Releases Open Internet Reply Comments to the Public - press release [links to web]
A Warning for HBO and CBS: Danger Lurks in the Stream - Art Brodsky op-ed
USDA Announces Funding for Rural Broadband and Telecommunications Infrastructure - press release
Frontier sued over Internet speeds, outages in West Virginia [links to web]
OWNERSHIP
FCC suspends review of Comcast/TWC and AT&T/DirecTV mergers
Antitrust experts slam Comcast merger plan, warn of threats to Netflix and Amazon Prime
A Most Unusual Deal - AT&T press release
Amazon is doing the world a favor by crushing book publishers - Matthew Yglesias analysis [links to web]
GOVERNMENT & COMMUNICATIONS
Where's the NSA reform? - USAToday editorial
Why is Mark Udall -- one of the Senate’s most powerful surveillance reformers -- hurting for tech sector cash? [links to web]
Sen Leahy condemns DEA's fake Facebook account [links to web]
Five things to know about 'Truthy'
See also: Fake news sites are using Facebook to spread Ebola panic [links to web]
CONTENT
Online Harassment - Pew research
Fake news sites are using Facebook to spread Ebola panic [links to web]
The Internet Is Not The Enemy - EFF op-ed [links to web]
Why You Can’t Trust You’re Getting the Best Deal Online
Pandora holds out olive branch of data to musicians
Reddit joins privacy groups to oppose NY bitcoin regulations [links to web]
Moody’s: NBA Deal Locks Up Rights, But At High Cost
Big data is a powerful weapon in the fight for equality - Daniel Castro op-ed [links to web]
WIRELESS/SPECTRUM
Court Sets New, Expedited Auction Challenge Schedule
TELECOM
T-Mobile quietly hardens part of its US cellular network against snooping [links to web]
T-Mobile, FTC in Settlement Talks Over Phone Charges [links to web]
FTC overlooks true villains in AT&T cramming settlement - AEI op-ed [links to web]
DIVERSITY
Silicon Valley Sexism: Is the Answer to Ditch Men Altogether? [links to web]
CHILDREN AND MEDIA
Youth Internet Safety: Risks, Responses, and Research Recommendations - Brookings research [links to web]
ELECTIONS AND MEDIA
The GOP’s 2016 tech deficit [links to web]
Corporations, advocacy groups spend big on ballot measures - research [links to web]
A Facebook scoreboard for the midterms [links to web]
Chicago Sun-Times reporter resigns in dispute with investor turned candidate for governor [links to web]
Governors are winning the TV ad race [links to web]
JOURNALISM
Chuck Todd Explains The Meet The Press "Balancing Act" [links to web]
Chicago Sun-Times reporter resigns in dispute with investor turned candidate for governor [links to web]
LOBBYING
Comcast grabs former House Oversight chairman to lobby during merger home stretch [links to web]
COMPANY NEWS
Comcast Profit Tops Estimates With Broadband Customers [links to web]
Fight for iPhone users hurts AT&T [links to web]
T-Mobile Can Stay Independent, Owner Deutsche Telekom Says [links to web]
How T-Mobile Trashed Its Own Industry and Gained 22 Million Subscribers in the Process [links to web]
STORIES FROM ABROAD
Hungary plans per-gigabyte “internet tax” on service providers
INTERNET/BROADBAND
SETTING THE CHICKEN LITTLE ISPs STRAIGHT
[SOURCE: Benton Foundation, AUTHOR: Michael Copps]
[Commentary] The opponents of a truly Open Internet are spending millions of dollars to transform the debate over what should be a no-brainer regulatory finding into something analogous to dropping a hydrogen bomb. The big Internet Service Providers (ISPs) would have us believe that Title II net neutrality is regulatory strangulation, government-by-dictatorship, wholesale infringement of their First Amendment rights, and on and on, ad infinitum, ad nauseum. Listening to the rants and wails of Comcast, Verizon, and AT&T over net neutrality reminds me of Chicken Little, Henny Penny, and Ducky Lucky rushing to warn their friends of impending doom. “The sky is falling, the sky is falling,” they clucked and quacked; the world is ending. But the sky wasn’t falling; it was just a tiny acorn bouncing harmlessly off Chicken Little’s head. ‘Twas quite the ruckus they raised; it just wasn’t reality. The net neutrality decision facing the Federal Communications Commission (FCC) is much less dramatic than “The Sky is Falling ISP Threesome” endlessly contend.
http://benton.org/blog/setting-chicken-little-isps-straight
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SHIFTING WINDS
[SOURCE: Los Angeles Times, AUTHOR: Michael Hiltzik]
The unknown factor that keeps advocates of network neutrality up at night is whether our political leaders will have the spine to resist the principle's enemies -- the Comcasts and Verizons of the world, who wish to profiteer from charging website providers extra for preferential access to your home and business. A few glimmers of hope have emerged in recent days. Combined with an analysis showing that the overwhelming majority of comments flowing in to the Federal Communications Commission favor an "open Internet" -- that is, net neutrality -- statements by President Barack Obama and possible presidential candidate Hillary Clinton suggested that the principle is gathering political weight. But advocates shouldn't declare victory yet. This is Washington, after all, where money talks. And the would-be tollkeepers on the information superhighway already are very, very rich.
benton.org/headlines/are-political-winds-shifting-favor-net-neutrality | Los Angeles Times
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REP ESHOO ON RECLASSIFICATION
[SOURCE: The Hill, AUTHOR: Mario Trujillo]
Rep Anna Eshoo (D-CA) called on the Federal Communications Commission to reclassify broadband Internet service so new network neutrality rules can stand up to legal challenges while still banning “fast lanes.” In a letter to FCC Chairman Tom Wheeler, she advised the commission to reclassify broadband as a "telecommunications service," but use restraint when enforcing all the provisions that come with the new classification. She said a "light touch" would be necessary when enforcing the new classification under Title II of the Communications Act. Applying all the rules under the new authority is "not necessary to ensure the FCC retains oversight of broadband for net neutrality, consumer protection and universal service goals."
benton.org/headlines/rep-eshoo-reclassify-broadband-network-neutrality | Hill, The
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PROTECTING ONLINE INNOVATION
[SOURCE: Vox, AUTHOR: Timothy Lee]
To understand today's network neutrality debate, it is important to understand the history of how of the government has regulated the telecom industry. Beginning in the 1970s, the federal government deregulated the industry, paving the way for the modern internet. But when people talked about deregulation back in the 1970s, they meant something different from the concept liberals hate -- and conservatives love -- today. This history has important implications for the modern network neutrality debate. Today, most conservatives portray any regulation of incumbent phone and cable companies as an assault on the free market. But a previous generation of right-leaning policymakers had a different view. They understood that the free market can't work without competition, and that competition sometimes requires active support from the government.
benton.org/headlines/right-wasnt-always-opposed-regulations-protecting-online-innovation | Vox
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DANGER LURKS IN THE STREAM
[SOURCE: Huffington Post, AUTHOR: Art Brodsky]
[Commentary] Do HBO and CBS know what they got themselves into? Do Lionsgate and Tribeca have a clue? Think parlor, spider, fly. Or, if you're of a more cinematic state of mind, think of a deal they can't refuse. Pick your metaphor. The clever minds at the media companies think they will be able to cash in on the streaming technology that boosted Netflix and made stars on YouTube. They well might, but at some point, the same extortion racket that got to Netflix will get to them. And it won't be pretty. If HBO, CBS and the others think they can avoid the same fate, well, good luck to them. The only good that could come of this mess is that the entertainment industry wakes up and realizes that an open, neutral Internet serves their purpose. If the showbiz industry (minus NBC and Universal studios which are owned by Comcast), used its traditional muscle in Washington to team up with the tech industry and public-interest groups, to make a big push for Net Neutrality, there might be a decent chance something positive might result. But if they decide to tough it out alone, they shouldn't be surprised to hear a knock at the door and find someone saying, "Nice little video business. Be a shame if something happened to it." It's something that Tribeca co-founder Robert DeNiro would recognize from his film career. [Brodsky is a communications consultant]
benton.org/headlines/warning-hbo-and-cbs-danger-lurks-stream | Huffington Post
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USDA FUNDING
[SOURCE: Department of Agriculture, AUTHOR: Press release]
Agriculture Secretary Tom Vilsack announced $190.5 million in grants and loans to make broadband and other advanced communications infrastructure improvements in rural areas. USDA is providing $190.5 million for 25 projects in 19 states, the Commonwealth of Puerto Rico and the U.S. Virgin Islands. Funding is contingent upon the recipients meeting the terms of their grant or loan agreements. USDA is providing assistance through the Community Connect Grant program, the Public Television Digital Transition Grant program and the Telecommunications Infrastructure Loan program.
benton.org/headlines/usda-announces-funding-rural-broadband-and-telecommunications-infrastructure | Department of Agriculture
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OWNERSHIP
FCC SUSPENDS MERGER REVIEWS
[SOURCE: ars technica, AUTHOR: Jon Brodkin]
The Federal Communications Commission paused the "180-day informal time clock" in its review of the proposed Comcast/Time Warner Cable and AT&T/DirecTV mergers. The extension comes in response to a request by Dish Network; Comptel; Monumental Sports and Entertainment; RCN; Grande Communications; Choice Cable TV of Puerto Rico; and Writers Guild of America, West. These organizations filed their request for an extension after content companies refused to allow access to confidential carriage agreements, despite the FCC issuing a joint protective order requiring limited disclosure. The content companies that objected to providing confidential information included CBS, Scripps, Disney, Time Warner, Twenty First Century Fox, Univision, Viacom, Discovery, and TV One.
benton.org/headlines/fcc-suspends-review-comcasttwc-and-attdirectv-mergers | Ars Technica | see the FCC Order
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ANTITRUST EXPERTS SLAM COMCAST
[SOURCE: GigaOm, AUTHOR: Jeff John Roberts]
A letter signed by more than three dozen law and economics professors and submitted to the Federal Communications Commission makes a withering case against the proposed merger of cable giants Comcast and Time Warner Cable, claiming the deal would harm consumers and violate the antimonopoly provisions of the federal Clayton Act. According to the 16-page submission, the merger will reduce competition by providing Comcast with over 40 percent of the market for broadband internet services, and make it easier for the incumbents to hobble “over-the-top” challengers like Netflix by congesting their internet traffic. The document, signed by antitrust experts from across the country including Columbia’s Tim Wu and Stanford’s Mark Lemley, comes as the FCC decides whether or not to approve the $45 billion merger, which was announced in February. A decision is expected in 2015.
benton.org/headlines/antitrust-experts-slam-comcast-merger-plan-warn-threats-netflix-and-amazon-prime | GigaOm
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A MOST UNUSUAL DEAL
[SOURCE: AT&T, AUTHOR: Jim Cicconi]
While the comment period on our merger with DIRECTV won’t close until November 5th, the recent round of filings allows us to take stock of where this deal stands in terms of both support and opposition. And I’d have to say that, so far, we’re very encouraged. As my fellow telecom policy nerds know, the Federal Communications Commission process requires us to show that the combination of DIRECTV with AT&T is in the public interest. We’ve taken this obligation very seriously. In fact, well before the deal was announced, we began analyzing those benefits, building them into the decision about whether to go forward with the transaction. That in itself may be unusual for a merger. Now, as we review the filings, it’s great to see so many citing the positive impact those benefits will have for their business, community, state, members, or constituency. The FCC filings to date show that support for this merger is both deep and broad, and seems to fall into a number of categories: Labor, Small Business, Rural America, High Tech, Content and Programming, and Diversity and Inclusion.
benton.org/headlines/most-unusual-deal | AT&T
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GOVERNMENT & COMMUNICATIONS
WHERE’S THE NSA REFORM?
[SOURCE: USAToday, AUTHOR: Editorial staff]
[Commentary] After leaks last year revealed a vast web of government surveillance of innocent Americans, the outrage in Washington could hardly be contained. Privacy advocates and lawmakers from both parties wanted the most intrusive program shut down. A federal judge called the technology it employs "almost Orwellian." The bipartisan Privacy and Civil Liberties Oversight Board, appointed by President Obama, found the program was illegal. And the president called for major changes. Yet the program lives on. Choosing between privacy and security is never easy. But that's not the choice here. The compromise measure would allow access to phone records with some smart safeguards. Americans would be no less safe, and the values they cherish would be better protected.
benton.org/headlines/wheres-nsa-reform | USAToday
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TRUTHY STUDY
[SOURCE: The Hill, AUTHOR: Mario Trujillo]
Members of the House Science Committee are ramping up scrutiny of a university project that studies trends on Twitter. Here are five things to know about the project:
The Indiana University computer science department samples real-time public tweets to identify and study trending topics, political and otherwise. According to its initial grant abstract in 2011, the researchers seek to "explore why some ideas cause viral explosions while others are quickly forgotten."
The federal government's National Science Foundation issued a grant to the project in 2011. It has been given $919,917 since 2011, with the grant set to expire in June 2015. The project is also funded through the James S. McDonnell Foundation.
The project has explored the partisan differences in social media use and the spread of misinformation online, among a number of broader issues.
The Indiana University computer science department said the project is not a "political watchdog, a government probe of social media, an attempt to suppress free speech, a way to define 'misinformation,' a partisan political effort, [or] a database tracking hate speech." "There is a good dose of irony in a research project that studies the diffusion of misinformation becoming the target of such a powerful disinformation machine."
"Truthiness" won the Word of the Year award in a Merriam-Webster online survey in 2006 after TV host Stephen Colbert coined the term during his pilot episode of "The Colbert Report."
benton.org/headlines/five-things-know-about-truthy | Hill, The
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CONTENT
ONLINE HARASSMENT
[SOURCE: Pew Internet and American Life Project, AUTHOR: Maeve Duggan]
Harassment -- from garden-variety name calling to more threatening behavior -- is a common part of online life that colors the experiences of many web users. Fully 73% of adult internet users have seen someone be harassed in some way online and 40% have personally experienced it. Pew asked respondents about six different forms of online harassment. Those who witnessed harassment said they had seen at least one of the following occur to others online:
60% of internet users said they had witnessed someone being called offensive names
53% had seen efforts to purposefully embarrass someone
25% had seen someone being physically threatened
24% witnessed someone being harassed for a sustained period of time
19% said they witnessed someone being sexually harassed
18% said they had seen someone be stalked
Those who have personally experienced online harassment said they were the target of at least one of the following online:
27% of internet users have been called offensive names
22% have had someone try to purposefully embarrass them
8% have been physically threatened
8% have been stalked
7% have been harassed for a sustained period
6% have been sexually harassed
benton.org/headlines/online-harassment | Pew Internet and American Life Project
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PANDORA DATA
[SOURCE: Los Angeles Times, AUTHOR: Jon Healey]
Pandora Media, the king of personalized online radio services, pays recording artists, songwriters, record labels and music publishers close to $300 million a year in royalties. That's not nearly enough to satisfy the company's critics in the music industry, who resent how little Pandora pays each time a user plays a track. Now the company plans to start offering artists more than just royalties. It's opening a new Artists Marketing Platform that provides detailed analytics for bands and their managers about their songs and their fans. Pandora AMP will be available free to any artist whose music is available on the service. Among other things, artists will be able to see which cities are home to the greatest clusters of their fans, the number of thumbs up (the Pandora equivalent of a Facebook "like") each of their tracks have received from listeners, and some basic demographic information on the users who have created playlists based on their music.
benton.org/headlines/pandora-holds-out-olive-branch-data-musicians | Los Angeles Times | GigaOm | Vox
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NBA DEAL
[SOURCE: Multichannel News, AUTHOR: Michael Farrell]
Credit rating agency Moody’s Investors Service believes the recent $24 billion, nine-year National Basketball Association rights deal reached by ESPN and Turner Broadcasting System will secure sports programming for the content companies for the long term, but includes digital rights that could lead to subscriber losses for some multichannel video programming distributors. The Turner-ESPN deal came at a high price -- more than double the cost of its current agreement, according to Moody’s estimates. But it removes any uncertainty regarding the ability to carry the lucrative sports programming well into the next decade and other aspects of the deal -- including digital rights for NBA programming on the Internet -- gives ESPN and Turner more leverage in negotiations with distributors. The deal will likely cause affiliate fees to rise over the next few years as distribution deals come up for renewal, given the must-have nature of the content, Moody's wrote. Turner, which is currently in the middle of its renewal cycle -- as evidenced by its current spat with Dish Network -- could be the first to reap the affiliate fee benefit of the deal. Traditional television remains the preferred way to watch video programming of all kinds, Moody’s says.
benton.org/headlines/moodys-nba-deal-locks-rights-high-cost | Multichannel News
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ONLINE DEALS
[SOURCE: Wall Street Journal, AUTHOR: Elizabeth Dwoskin]
Consumers have protested when e-commerce companies have extended their behind-the-scenes personalization to prices, charging different sums for the same goods, or pushing some people toward higher-priced offers. A new study of top e-commerce websites found these practices -- called discriminatory pricing or price steering -- are much more widespread than was previously understood. The study, by a team of computer scientists at Northeastern University, tracked searches on 16 popular e-commerce sites. Six of those sites used the pricing techniques; none of the sites alerted consumers to that fact. “In the real world, there are coupons and loyalty cards, and people are fine with that,” said Christo Wilson, an assistant professor at Northeastern who led the research team. “Here, there’s a transparency problem. The algorithms change regularly, so you don’t know if other people are getting the same results.”
benton.org/headlines/why-you-cant-trust-youre-getting-best-deal-online | Wall Street Journal
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WIRELESS/SPECTRUM
INCENTIVE AUCTION CHALLENGE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The US Court of Appeals for the District of Columbia has agreed to a new, expedited schedule to hear the broadcaster challenges to the Federal Communications Commission broadcast incentive spectrum auction. The new schedule sets Nov. 7 for a joint brief from National Association of Broadcasters and Sinclair; Dec. 16 for respondents brief, Dec. 24 for briefs from parties intervening on either side; Jan. 20 for reply briefs, and Jan. 27 for final briefs. The court did not set an oral argument date. The briefs must make clear the standing of the petitioners to challenge the FCC's administrative action, said the court.
benton.org/headlines/court-sets-new-expedited-auction-challenge-schedule | Broadcasting&Cable
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STORIES FROM ABROAD
HUNGARY NET TAX
[SOURCE: GigaOm, AUTHOR: David Meyer]
Hungarian internet service providers will be forced to pay a new “internet tax” on the data use they enable, if the country’s parliament passes a new tax bill. Reports suggest that this bill will go through, as the ruling Fidesz party has a two-thirds parliamentary majority. It would levy a tax of 150 forints, or around 62 US cents, on every gigabyte of data used by ISPs’ customers -- an internet-focused extension of an existing tax on phone calls and text messages. As many fear the ISPs will pass the costs on to their customers, Hungarian internet users are predictably apoplectic, and some have reportedly planned demonstrations.
benton.org/headlines/hungary-plans-gigabyte-internet-tax-service-providers | GigaOm | Reuters
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