December 2014

Why Bitcoin advocates might like New York's new proposed rules for virtual currency

One of New York's top financial regulators is laying out a new policy on Bitcoin and other virtual currencies after a flood of public feedback encouraged the agency to scale back its proposed rules. New revisions to the proposal would trim some requirements on Bitcoin-related businesses, and clarify others.

Among the key changes? Companies covered by the regulations will no longer be required to store the addresses of every person involved in a Bitcoin transaction -- an idea privacy hawks have said would deter people from adopting virtual currencies. Now, companies regulated by New York's so-called BitLicense will only be required to gather transaction information from their own customers, said Ben Lawsky, New York's superintendent of financial services. In addition, covered companies will only have to store that information for seven years, down from the 10 years the department of financial service, was previously considering.

German researchers discover a flaw that could let anyone listen to your cell calls

German researchers have discovered security flaws that could let hackers, spies and criminals listen to private phone calls and intercept text messages on a potentially massive scale -- even when cellular networks are using the most advanced encryption now available.

The flaws are the latest evidence of widespread insecurity on SS7, the global network that allows the world’s cellular carriers to route calls, texts and other services to each other. Experts say it’s increasingly clear that SS7, first designed in the 1980s, is riddled with serious vulnerabilities that undermine the privacy of the world’s billions of cellular customers. These vulnerabilities continue to exist even as cellular carriers invest billions of dollars to upgrade to advanced 3G technology aimed, in part, at securing communications against unauthorized eavesdropping. But even as individual carriers harden their systems, they still must communicate with each other over SS7, leaving them open to any of thousands of companies worldwide with access to the network.

Expanding Opportunities for Broadcasters Coalition: FCC Low-Balls Station Auction Values

[Commentary] The Expanding Opportunities for Broadcasters Coalition released a list of 1,100 TV stations that it claims are being grossly undervalued by the Federal Communications Commission in its planning for the 2016 incentive auction.

EOBC says that while the FCC said that “the prices offered to stations would vary based on the station’s interference profile -- its impact on repacking,” but in the recently released public notice seeking comments on the auction, “the commission diverts from this approach, proposing a pricing formula that is based 50 percent on the interference-free population that a station serves. This component, EOBC says “is completely irrelevant to a station’s interference or ‘blocking’ profile and is included in the formula for one reason -- to drive down prices.” EOBC goes on to say: “Our analysis demonstrates that more than a thousand stations will receive prices that significantly undervalue their contribution to clearing spectrum. This issue impacts the entire industry.”

Closing the 911 Location Accuracy Gap

[Commentary] December 24, 2014 marks a deadline for public comments on the latest proposal on rules to help first responders better locate indoor wireless 911 callers. We welcome the views of public safety organizations, industry, and consumer groups in response to questions in the Public Notice. The stakeholder input we receive on these and other issues raised in this proceeding will be very helpful as we develop recommended final rules for consideration by the Federal Communications Commissioner Chairman and Commissioners. With the public’s help, we will achieve a good result that strengthens the 911 safety net for all Americans.

Time Warner Cable doesn't want to face TV competition in Lincoln, Nebraska

Time Warner Cable has cried foul over a proposed franchise agreement between the city of Lincoln (NE) and Windstream that would force TWC to face competition for TV customers.

TWC lawyer Bill Austin said during a public hearing that the Windstream franchise violates a requirement in Time Warner's franchise agreement that new franchises may not be "more favorable or less burdensome when taken as a whole.” A city attorney disputed Time Warner's argument. The two franchises are comparable, city attorney Steve Huggenberger said, pointing to Windstream obligations to provide public education and government channels and money for public capital needs. A vote is expected on January 5, 2015.

FCC Proposes OTT Reclassification

The Federal Communications Commission has voted unanimously -- three Democratic "yes" votes, two Republican "concurrences" -- to propose reclassifying linear over-the-top (online) video providers as MVPDs (traditional pay-TV), at least for the purposes of access to vertically integrated programming. The item will likely not be released until December 19, 2014, along with the commissioner statements. In essence the vote launches the process of figuring out how to treat online video services that emulate traditional ones -- linear day and date channel lineups.

Media Analyst: FCC OTT Reclassification Not 'Huge' Deal

Media analyst Craig Moffett says he doesn't think the Federal Communications Commission's vote to reclassify some over-the-top video providers as MVPDs (traditional pay-TV) is a "huge issue" because it is mostly about access to the programming of vertically integrated companies, and one of the biggest is already subject to them. He also says that while the financial community appears to have signaled it can live with Title II, he thinks the forbearance issues around that approach are more complicated than some may think.

FCC Rejects Argument That "Redskins" Is a Dirty Word

The Federal Communications Commission isn't going to fine broadcasters for using the term "Redskins". The FCC has rejected a petition by George Washington University law professor John Banzhaf III to deny a Washington-area radio station’s broadcast license renewal because announcers there routinely use the word “Redskins” when talking about the team. The petition argued that the word is akin to an obscenity or hate speech and shouldn’t be used on the air. “Because the law defines profanity as sexual or excretory in nature, we cannot find the word profane,” the FCC’s Media Bureau said in a notice denying the petition.

FCC Must First Define 'Indecent' for Spanish Broadcasters

[Commentary] In 2013, a Spanish-language broadcaster entered into a "consent decree" with the Federal Communications Commission to avoid breaking its indecency rules. The broadcaster, Liberman Broadcasting, agreed to make a hefty $110,000 “voluntary contribution” to the US Treasury and the settlement imposed on the broadcaster a three-year “comprehensive compliance plan.”

But the consent decree sheds no light on the broader question of how the FCC interprets and enforces its indecency policies with respect to Spanish-language programming. It does not itemize the programming that the FCC felt to be contrary to indecency policies. As a result, we still don’t know precisely what Spanish terms may be “indecent” in the FCC’s view, and we don’t know how the FCC might have made that determination here or how it will make it in the future.

[Francisco Montero is a lawyer with Fletcher, Heald & Hildreth]

Half of Connecticut says it wants fiber-optic Internet -- and soon

Forty-six Connecticut towns said that they'd like to work with broadband companies so that residents can access gigabit speeds -- that's roughly 100 times what the average American household gets today. The list includes some of Connecticut's biggest towns, such as Bridgeport, New Haven and Hartford. But it also includes smaller municipalities where getting next-gen services might prove more difficult, such as Simsbury and Waterford. Although the state has fiber-optic cables connecting all 169 towns, that infrastructure typically ends in nodes serving the local town hall or police and fire stations. The next step will be to connect individual homes to that network. As many as 1.8 million Connecticut residents would get access to fiber if public-private partnership plans move forward.

Benton

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