November 2014

Technology Transitions: Consumers Matter Most

I am circulating to my fellow Commissioners two items that take up the task of encouraging technology transitions while protecting those core values. Tremendous benefits can be realized by the transition of public safety to IP-based networks.

For example, IP-based networks will enable 911 call centers to receive a greater range of information -- such as text, video, and data from vehicle crash sensors -- to better support emergency response. But the introduction of new technologies has also introduced new vulnerabilities that cannot be ignored. We have seen a spike in so-called “sunny day” outages, when failure comes from the failure of software or databases and not from natural disasters. As the Public Safety Bureau reported to the Commission earlier this month, a “sunny day” outage this past April left consumers in 7 states without 911 service for up to 6 hours. Some 6,600 911 calls were not completed during that time. This is simply unacceptable.

TDM-to-IP Transition Drives FCC 911 Proposal and Copper Retirement Plans

Federal Communications Commission officials said that FCC Chairman Tom Wheeler is circulating two items suggesting that the FCC take further action on two aspects of the TDM-to-IP transition. One item is a notice of proposed rulemaking focused on copper retirement and aimed at ensuring that public safety, consumers and competition are protected as network operators convert today’s copper- and TDM-based phone networks to IP-based networks. A second NPRM focuses on ensuring 911 reliability during this transition.

The NPRM focused on protecting consumers, public safety, and competition has three key components:

  • Ensuring that consumers can call 911, electric utilities and the like during a power outage even if they are using phone service delivered over cable or fiber infrastructure. Traditional phone service delivered over copper wiring provides power to the handset from the central office while the alternative delivery methods require backup power.
  • Ensuring that customers are notified if a service provider plans to retire its traditional copper phone network
  • Ensuring that competition is not harmed if telcos discontinue a legacy service, possibly by requiring the telcos to make equivalent replacement services available to competitors

The second NPRM was triggered by a recent increase in what are commonly referred to as “sunny day” 911 outages caused not by a weather or other emergency but instead result from equipment failures. The NPRM makes proposals in four areas:

  • Establishing a notification process that would inform the public of changes to 911 systems
  • Requiring companies that are part of the 911 ecosystem to be more accountable to the public and ensuring that all parties understand their important roles
  • Promoting situational awareness during 911 outages, including establishing a single point of contact during service restoration
  • Expanding the types of entities involved in the 911 ecosystem requiring FCC certification

The FBI's Secret House Meeting to Get Access to Your iPhone

The Obama Administration is ramping up its campaign to force technology companies to help the government spy on their users. FBI and Justice Department officials met with House staffers for a classified briefing on how encryption is hurting police investigations, according to staffers familiar with the meeting. The briefing included Democratic and Republican aides for the House Judiciary and Intelligence Committees, the staffers said. The meeting was held in a classified room, and aides are forbidden from revealing what was discussed. It's unclear whether the FBI is planning a similar briefing for Senate aides. FBI Director James Comey gave a speech arguing that the "post-Snowden pendulum has swung too far," and that police are often now unable to obtain the information they need for an investigation—even after getting a warrant. As a result, child predators, terrorists, and other criminals could go free, he warned.

When Government is the Hacker, How Do You Protect Yourself

Leaks by ex-intelligence contractor Edward Snowden ignited awareness that US authorities access US citizens' private call records and correspondence with foreigners. Just like cyber criminals, they break into personal devices, using phishing techniques. Bogus, yet persuasive emails -- say, ones that contain an Associated Press article about bomb threats at schools -- secretly slip surveillance malware into a suspect's computer. The feds also compel telecom companies to turn over bulk call records and tap international communications. Tech developers cashing in on the mass spying revelations are promoting products that prevent the government from breaching citizens' data. Yet these companies, according to US authorities, are impeding legal efforts to track down criminals and terrorists.

With political ads expected to hit a record, news stations can hardly keep up

With one of the most competitive Senate races in the country, political ads in Iowa are running nonstop on Des Moines station WHO-DT. And it can hardly keep up with the demand. At a time when fewer people are watching news on TV, the station added an hour-long daily news program focused on politics -- and hired four new journalists to fill the time -- just so it can sell more lucrative commercials.

Dollars are also flooding into modest local stations in Alaska, Arkansas and Kansas -- many unaccustomed to such demand, since they are not in traditional presidential battleground states. The ads are a boon for local news stations, which are struggling to retain their audience. Like newspapers, the local TV news business has been upended by the Internet, which has radically altered how people find out what’s going on in their communities. But one thing remains largely unchanged: the belief that television ads are the best way to reach voters.

The Conservative Alienation from Journalism

[Commentary] Coverage of the Pew Research Center’s latest study has emphasized the finding that news consumption has become more polarized, each of us preferring All the News that Fits Our Worldview. But to me the most interesting finding was different: the deep alienation of conservatives from mainstream media and “journalism.”

Get this: among the 36 outlets they studied, there was only one -- The Wall Street Journal -- that had positive levels of trust among both consistently liberal and consistently conservative Americans. This was not because of ideological polarization (liberals trust plenty of outlets). It is because conservatives trust so few. Not surprisingly, they mistrust MSNBC and Mother Jones. But they also mistrust ABC News, CBS, NBC, The New York Times, The Washington Post, and CNN. Hell, they even discount Bloomberg, USA Today, PBS and Yahoo News.

[Waldman is author of the landmark report on the changing media landscape produced by the Federal Communications Commission]

AT&T, Verizon boosts caps on their cheaper shared data plans

Verizon and AT&T doubled the data available on higher-tier shared plans as all of the major carriers tried to entice new customers with bigger buckets of bandwidth. Now both operators are scaling down those promotional offers to their low-tier (in the case of AT&T) and mid-tier (in the case of Verizon) mobile bandwidth bundles. Both AT&T and Verizon‘s original double-data promotions targeted accounts that bought data in bulk allotments of 15GBs or more a month to split between many family members or multiple devices.

Study: T-Mobile paid an average of 30 cents/MB in U.S. data roaming costs in 2013

As T-Mobile US and AT&T Mobility continue to duel over potential changes to the Federal Communications Commission's data roaming rules, a filing by an economics professor in support of T-Mobile's position reveals that in 2013, T-Mobile paid an average 30 cents per MB for data roaming data in the US.

The economist, Joseph Farrell, argues that the figure is 3.6 times the retail data rate Verizon Wireless, charges its own customers, 6 times the retail rate for AT&T and more than 10 times the rate at Sprint. However, in 2012, T-Mobile paid almost 86 cents per MB in data roaming charges and in 2011 in paid almost $1.20 per MB. Those figures have likely fallen as T-Mobile has built outs its network coverage, especially for LTE. Farrell, who served as the FCC's chief economist from 1996-1997 and is now a professor at the University of California-Berkeley, argued in his filing to the FCC on T-Mobile's behalf that when deciding whether a proposed data roaming rate or agreement is commercially reasonable, the FCC "should be especially concerned about high rates charged to a significant retail competitor that lacks adequate alternative roaming providers," as is the case with T-Mobile and AT&T.

FCC allows 70 companies -- including AT&T, Verizon, T-Mobile and Dish -- to bid in AWS-3 auction

A total of 70 companies have qualified to bid in the Federal Communications Commission's upcoming AWS-3 spectrum auction, which starts Nov. 13 and will be the country's largest spectrum auction since 2008.

Verizon Wireless, AT&T Mobility and T-Mobile US, as well as Dish Network, are qualified to bid, along with dozens of smaller carriers, investment firms and private entities. Sprint said in September that it would sit out the AWS-3 auction. The FCC's recent decision to push the start of the incentive auction of 600 MHz broadcast TV spectrum from mid-2015 to early 2016 increases the importance of the AWS-3 auction, since carriers will now need to wait even longer to get access to any broadcast TV spectrum that may be auctioned. Further, a number of carriers already use AWS spectrum for their LTE deployments, and the AWS-3 spectrum up for auction is expected to integrate quickly into the device and network ecosystem. However, the AWS-3 spectrum is mid-band spectrum and not low-band spectrum, and therefore won't have as good propagation characteristics as the low-band 600 MHz spectrum.

AP, Sen Leahy write to AG Holder over FBI's fake news ploy

Both the Associated Press and Senate Judiciary Committee Chairman Patrick Leahy (D-VT) have written letters to Attorney General Eric Holder expressing concern that the FBI faked an AP story with a Seattle Times link in 2007 in order to catch a suspect in a bomb threat. “Such tactics carry ethical and legal risks … When law enforcement appropriates the identity of legitimate media institutions, it not only raises questions of copyright and trademark infringement but also potentially undermines the integrity and credibility of an independent press,” Chairman Leahy wrote.