February 4, 2015 (Will the FCC Zero-out Zero-ratings in Net Neutrality Decision?)
BENTON'S COMMUNICATIONS-RELATED HEADLINES for WEDNESDAY, FEBRUARY 4, 2015
Hearing today: Building a More Secure Cyber Future: Examining Private Sector Experience with the NIST Framework
NETWORK NEUTRALIY
Will the FCC Zero-out Zero-ratings in Net Neutrality Decision? - analysis
Republican FCC regulators in the dark on Web rules
Senate Minority Leader Reid backs tough Network Neutrality rules [links to web]
AT&T previews lawsuit it plans to file against FCC over net neutrality
Tumblr launches network neutrality push targeting Congress [links to web]
American Cable Association: Our Members Don't Warrant Title II [links to web]
Network neutrality rules could lead to legal quagmire [links to web]
Net Neutrality is Critical for Europe's Future - Tim Berners-Lee op-ed
MORE INTERNET/BROADBAND
What Impact Will the Community Broadband Act Have? [links to web]
Competition could cost US Internet Service Providers $24 Billion a year
FCC Announces Entities Under Consideration As Next-In-Line Bidders For Rural Broadband Experiments Support - public notice [links to web]
WIRELESS/SPECTRUM
DISH, the Spectrum Auction, and the Wrath of Commissioner Pai - analysis
Behind Dish Wireless Coup, Ties to Alaskan Native Groups
Dish Enjoys a Spectrum of Options - Miriam Gottfried analysis
Cisco Makes Its Annual Predictions on Mobile Data Traffic [links to web]
National Association of Broadcasters Tells FCC Not to 'Mandate' White Spaces [links to web]
Homes need better Wi-Fi. Is Eero the answer? [links to web]
Verizon Customers at Super Bowl XLIX Rack Up More than 25 Million Wireless Data Connections - press release [links to web]
MEDIA OWNERSHIP
Investor Concern Mounting Over Time Warner Cable-Comcast Deal
What Google Fiber is teaching us about vertical integration - AEI op-ed [links to web]
Behind Dish Wireless Coup, Ties to Alaskan Native Groups
SECURITY/PRIVACY
'Connect the Dots' -- An Alternative to NSA Bulk Surveillance? [links to web]
Verizon's super-cookies are a super privacy violation - David Lazarus analysis [links to web]
Court tosses warrant after FBI's Internet 'ruse' [links to web]
No one knows what happened to NSA staffers who snooped on their lovers [links to web]
Europe’s Expanding ‘Right to Be Forgotten’ - NYTimes editorial
ELECTIONS AND MEDIA
Why Matt Drudge might be more powerful now than ever before [links to web]
TELEVISION/RADIO
Cable TV viewing declined by more than 12 percent in January [links to web]
What Washington Has in Store for Broadcasters and Digital Media Companies in 2015 - analysis [links to web]
CONTENT
To save the world/Internet, please start sharing content that makes you feel bad [links to web]
New app Timeline brings explainer journalism to mobile [links to web]
Google killed 500 million bad ads in 2014 [links to web]
Europe’s Expanding ‘Right to Be Forgotten’ - NYTimes editorial
HEALTH AND MEDIA
Teens who use screens more sleep less [links to web]
CIVIC PARTICIPATION
The Public Participation Playbook Goes Live [links to web]
OPEN GOVERNMENT
Institute for Public Representation Lambastes FCC Order Non-Publication
Senate Judiciary to make move on FOIA reform [links to web]
BUDGET
FCC Fiscal Year 2016 Budget in Brief - press release
Investing in America’s Future through R&D, Innovation, and STEM Education: The President’s FY 2016 Budget - press release [links to web]
Big Bucks for ONC in President's FY16 Budget Request [links to web]
FCC REFORM
FCC Adopts a Policy Statement on Forfeiture Methodology for Violations of Rules Governing Payment to Certain Federal Programs - press release [links to web]
POLICYMAKERS
FCC Enforcement Bureau Adds Career Consumer Protection Litigator to its Leadership Team - press release [links to web]
STORIES FROM ABROAD
Net Neutrality is Critical for Europe's Future - Tim Berners-Lee op-ed
Europe’s Expanding ‘Right to Be Forgotten’ - NYTimes editorial
How reporters are experiencing censorship on social media - op-ed [links to web]
MORE ONLINE
Tech economy is booming with no bubble burst in sight [links to web]
NETWORK NEUTRALIY
WILL THE FCC ZERO-OUT ZERO-RATINGS IN NET NEUTRALITY DECISION?
[SOURCE: Benton Foundation, AUTHOR: Andrew Schwartzman]
[Commentary] As the debate over Network Neutrality nears its climax with the Federal Communications Commission’s scheduled vote on February 26, there has been increasing attention on one relatively small sub-issue, so-called “zero rating” of certain mobile wireless digital services. Zero rating is currently the subject of intense debate in Europe as well, and has long been controversial in the developing world. The reason zero rating draws such vociferous reactions is that it flies in the face of the underlying principles of Network Neutrality. It is a clear instance of discrimination in content based on the identity of the source. Data from, say, Pandora is treated differently, and favorably, compared to data from some other providers. While it is reasonably certain that the FCC will vote to declare broadband services to be subject to Title II, it remains to be seen if zero rating will be prohibited.
https://www.benton.org/blog/will-fcc-zero-out-zero-ratings-net-neutralit...
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REPUBLICAN FCC REGULATORS IN THE DARK ON WEB RULES
[SOURCE: The Hill, AUTHOR: Julian Hattem]
Inside the Federal Communications Commission, some of FCC Chairman Tom Wheeler’s four other Commissioners have largely been left in the dark regarding the application of utility-style rules to the Internet. "I have been briefed, but I think the word there is brief. It was extremely brief,” said FCC Commissioner Michael O’Rielly, one of the FCC’s two Republicans. “I don’t have a lot of information,” he added. “The information I was given was a lot of this item is still to be determined.” An aide for Commissioner Ajit Pai, the other Republican on the FCC, said that his office had not yet seen the order either. An aide for Democratic Commissioner Mignon Clyburn said that her office, too, had not yet seen the draft.
benton.org/headlines/republican-fcc-regulators-dark-web-rules | Hill, The
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AT&T PREVIEWS LAWSUIT IT PLANS TO FILE AGAINST FCC OVER NET NEUTRALITY
[SOURCE: ars technica, AUTHOR: Jon Brodkin]
AT&T seems resigned to the near-certainty that the Federal Communications Commission will reclassify broadband as a common carrier service in order to enforce network neutrality rules. But it isn't going to let the decision stand without a legal challenge, and the company is already telling the world what it's going to argue in court. The first of AT&T's two recent filings at the FCC concerns whether Internet service providers are information service providers, telecommunications service providers, or both. They are currently treated as lightly regulated information service providers, but they would be reclassified as telecommunications providers under the FCC's expected action. AT&T argues that the capabilities Internet service providers would use to throttle, block, or prioritize traffic must be classified as information services because of the way information services are defined under the law. AT&T's second filing contains a procedural argument, accusing the FCC of making a decision without doing a required analysis.
benton.org/headlines/att-previews-lawsuit-it-plans-file-against-fcc-over-net-neutrality | Ars Technica | AT&T
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MORE INTERNET/BROADBAND
COMPETITION COULD COST US INTERNET SERVICE PROVIDERS $24 BILLION A YEAR
[SOURCE: GigaOm, AUTHOR: Stacey Higginbotham]
Point Topic, a United Kingdom research firm which gathers worldwide data on broadband prices, said that if the US market were truly competitive, its Internet service providers would lose $2 billion in revenue each month. Currently, US customers spend $5.27 billion a month based on Point Topic’s report. The report is mostly a thought exercise instead of a reaction to a definitive policy change, but it does make a compelling argument that US consumers pay the price for the current broadband duopoly we have in most markets. It also noted that the US is no longer the largest broadband market -- that distinction now belongs to China, which is what the analyst is comparing the US market against. The thought exercise ends with a pretty damning conclusion -- that the lack of competition and subsequent high price for broadband has hindered adoption and is beyond where it should be compared to other wealthy countries where broadband is cheaper.
benton.org/headlines/competition-could-cost-us-internet-service-providers-24-billion-year | GigaOm | Point Topic report
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WIRELESS/SPECTRUM
DISH, THE SPECTRUM AUCTION, AND THE WRATH OF COMMISSIONER PAI
[SOURCE: Public Knowledge, AUTHOR: Harold Feld]
[Commentary] Federal Communications Commission member Ajit Pai has actually picked up an issue I've championed since 2006 -- reform of the "designated entity" bidding credit. Unfortunately, as is too often the case in my opinion, Commissioner Pai directs his outrage at the wrong target. Rather than seeking constructive solutions to the tension between auction theory (which favors the largest incumbents) and competition theory (which holds the need to make sure someone wins licenses other than the largest incumbents), Commissioner Pai has decided to direct his wrath at DISH for finding a loophole in the auction structure stacked against them. In doing so, Commissioner Pai misses the real outrage of the auction. For DISH to make even a quasi-decent showing in the auction, it needed to use a bidding credit AND still spend more than $10 billion. T-Mobile, the next highest bidder at almost $2 billion, walked away with a mere handful of licenses that will do nothing to overcome the spectrum dominance of the two largest carriers. The fact that the two most robust competitors participating in the auction could spend a combined $12 billion and not appreciably alter the market structure one iota ought to raise very real concern. Bluntly, the fact that DISH could "save" $3 billion is not so much a scandal as a flashing red-light indicator that without regulatory intervention we can forget about any kind of competition in the wireless industry.
[Harold Feld is the Senior Vice President of Public Knowledge]
benton.org/headlines/dish-spectrum-auction-and-wrath-commissioner-pai | Public Knowledge
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BEHIND DISH’S COUP
[SOURCE: Wall Street Journal, AUTHOR: Shalini Ramachandran, Kate Linebaugh, Ryan Knutson]
The road to Dish’s coup to win a large chunk of wireless licenses -- with the aid of a $3.3 billion discount aimed at small businesses -- started in Texas and wound through Alaska. Texas investor, lawyer, fantasy-fiction author and former jailhouse teacher Stephen Hillard was a key member of an eclectic investment team that backed Dish’s successful bids for many of the licenses sold at government auction, putting to use decades of ties he had built to Alaskan Native American groups. The arrangements Hillard’s firm, Council Tree, helped put together allowed Dish to qualify for a 25% discount that is meant to bring small players into the wireless industry. Critics say Dish’s use of the incentive plan has only given a big company another avenue to control a scarce public resource -- radio waves. To obtain the small-business discount, Dish Chairman Charlie Ergen struck partnerships to create two investment vehicles -- Northstar Wireless and SNR Wireless. One is backed by Doyon Ltd., an Alaskan firm owned by Native Americans with interests in oil and land. The other drew investment giant BlackRock Inc. and former FCC official John Muleta, public records show.
benton.org/headlines/behind-dish-wireless-coup-ties-alaskan-native-groups | Wall Street Journal
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SPECTRUM OF OPTIONS
[SOURCE: Wall Street Journal, AUTHOR: Miriam Gottfried]
[Commentary] Dish won $13.3 billion worth of wireless spectrum licenses in the government’s recent auction, far more than most analysts expected. With the new additions, Dish now has roughly as much spectrum as T-Mobile US . Yet it still lacks a network to put those airwaves to use, leaving investors trying to fathom Chairman Charlie Ergen ’s plans. Amid the theories, one thing is clear: Dish’s massive spectrum holdings make it increasingly difficult for phone carriers to ignore. For Dish to realize the full value of its spectrum holdings it may need to sell its licenses – or itself. Buying Dish has become a more expensive proposition. Indeed, while Verizon may have balked at Ergen’s demands before the auction, purchasing the satellite company then would at least have saved it the takeout premium on Dish’s new spectrum and also kept an aggressive bidder out of the auction. But Verizon, or another buyer, may still have reason to act. Dish could have another plan to generate value from its spectrum: namely, building a wholesale business to lease it to other carriers. That could be even more lucrative down the line than a straight sale, according to estimates by New Street Research.
benton.org/headlines/dish-enjoys-spectrum-options | Wall Street Journal
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MEDIA OWNERSHIP
INVESTOR CONCERN MOUNTING OVER TIME WARNER CABLE-COMCAST DEAL
[SOURCE: Wall Street Journal, AUTHOR: Maureen Farrell]
Investors have become increasingly concerned that Comcast's $45 billion deal for Time Warner Cable won’t make it to the finish line. Time Warner Cable’s stock has dropped precipitously, falling more than 10 percent since the end of 2014. At $136.56 per share, its stock is also trading more than 10 percent below the value of Comcast’s offer, which gives Time Warner Cable shareholders 2.875 shares of Comcast for each share they own. Concerns are mounting that the Federal Communications Commission or the Justice Department could block the merger outright or that the FCC could try to get major concessions out of Comcast to approve it. If it does the latter, some analysts think that Comcast might simply walk away.
benton.org/headlines/investor-concern-mounting-over-time-warner-cable-comcast-deal | Wall Street Journal
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OPEN GOVERNMENT
INSTITUTE FOR PUBLIC REPRESENTATION LAMBASTES FCC ORDER NON-PUBLICATION
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Angela Campbell and Andrew Schwartzman of the Georgetown University Law’s Institute for Public Representation are accusing the Federal Communications Commission of violating the Freedom of Information Act by not publishing an order involving a request for waiver of the FCC's newspaper/broadcast crossownership rule. Campbell and Schwartzman claim that the FCC's Media Bureau did not make the Nov. 26, 2014 opinion public until after the institute found out about it from one for the affected licensees and got a copy from FCC staff, and even then it was posted in such a way that it would only come up through a search of one of the four affected licensees. They wrote that the failure to publish offends "the basic principle of administrative law that an agency should publish its substantive decisions so that stakeholders have equal access to the agency’s precedents."
benton.org/headlines/institute-public-representation-lambastes-fcc-order-non-publication | Broadcasting&Cable
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BUDGET
FCC FISCAL YEAR 2016 BUDGET IN BRIEF
[SOURCE: Federal Communications Commission, AUTHOR: Press Release]
The Federal Communications Commission requests a fiscal year 2016 appropriation of $388,000,000 from offsetting collections and a $25,000,000 transfer of funds from the Universal Service Fund for a total Salaries and Expenses direct program level of $413,000,000. Over 90 percent of the increase relative to FY 2015 enacted represents the funds needed in FY 2016 to initiate a required move through GSA to new headquarters or headquarters restacking. This process is necessitated by the expiration of the FCC’s current lease. GSA is working with the FCC to identify the most-cost effective alternative to the current leasing agreement. Otherwise, the FCC requests funds to follow through on essential information technology upgrades, as well as other projects initiated during FYs 2014 and 2015, including increasing the Office of Inspector General baseline budget, developing and implementing the Do-Not-Call registry for telephone numbers used by Public Safety Answering Points, and continuing activities in support of the National Broadband Map. The FY 2016 budget request will be used to support the following Strategic Goals:
1) Promoting Economic Growth and National Leadership
2) Protecting Public Interest Goals
3) Making Network Work For Everyone
4) Promoting Operational Excellence
benton.org/headlines/fcc-fiscal-year-2016-budget-brief | Federal Communications Commission | FY 2016 Budget Estimates
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STORIES FROM ABROAD
NET NEUTRALITY IS CRITICAL FOR EUROPE'S FUTURE
[SOURCE: European Commission, AUTHOR: Tim Berners-Lee]
[Commentary] Maintaining network neutrality is critical for the future of the Web and the future of human rights, innovation and progress in Europe. Yet, some companies and governments are arguing that we should depart from the principle of net neutrality. Until now, we’ve largely got along ok without explicit laws to protect net neutrality, but as the Internet evolves, the situation has changed. If we want to maintain and enhance the Internet as an engine for growth, we must ensure that companies providing access should not be able to block, throttle, or otherwise restrict legal content and services of their users online, be it for commercial or political motivation. Of course, it is not just about blocking and throttling. It is also about stopping 'positive discrimination', such as when one internet operator favours one particular service over another. If we don’t explicitly outlaw this, we hand immense power to telcos and online service operators. In effect, they can become gatekeepers - able to handpick winners and the losers in the market and to favour their own sites, services and platforms over those of others. Binding net neutrality rules under consideration by the European Union (part of an omnibus proposal called the Telecoms Single Market Regulation) would do exactly that. The European Parliament made a clear and strong statement for net neutrality in their version of the legislation in Spring of 2014. Now it’s in the hands of the Council of the European Union to determine their position.
[Sir Tim Berners-Lee is the Founding Director of the World Wide Web Foundation]
benton.org/headlines/net-neutrality-critical-europes-future | European Commission
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NYTIMES ON RIGHT TO BE FORGOTTEN
[SOURCE: New York Times, AUTHOR: Editorial staff]
[Commentary] European officials are pushing an idea that will encourage autocrats everywhere to demand greater censorship on the Internet. They want companies like Google and Microsoft to abide by the European Union’s recently recognized legal principle of a “right to be forgotten” not just in the 28 countries of the union but everywhere. The European position is deeply troubling because it could lead to censorship by public officials who want to whitewash the past. It also sets a terrible example for officials in other countries who might also want to demand that Internet companies remove links they don’t like.
benton.org/headlines/europes-expanding-right-be-forgotten | New York Times
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