April 2015

FCC Fines CenturyLink and Intrado $17.4 Million For Multi-State 911 Outage

The Federal Communications Commission has resolved its investigation of an April 2014 multi-state 911 outage that prevented more than 11 million people in seven states from being able to reach emergency call centers for over six hours. The FCC's Enforcement Bureau has reached a $16 million settlement with CenturyLink and a $1.4 million settlement with Intrado Communications related to the companies' failures to meet their emergency call obligations during the 911 outage.

The 911 outage did not stem from an extraordinary natural disaster or other unforeseeable catastrophe; rather, it was a "sunny day" failure that resulted in over 6,600 missed 911 calls, including calls reportedly involving domestic violence, assault, motor vehicle accidents, a heart attack, an overdose, and an intruder breaking into a residence. "Americans need to be confident that the service they use to reach first responders is reliable and accessible in their time of need," said FCC Chairman Tom Wheeler. "Providers have a responsibility to ensure that Americans can use 911 to call for help any time. When a company fails to live up to its obligations, it will be held accountable."

Former E-Commerce Executive Charged with Price Fixing in the Antitrust Division's First Online Marketplace Prosecution

A former executive of an e-commerce seller of posters, prints and framed art has agreed to plead guilty for conspiring to fix the prices of posters sold online. A one-count felony charge was filed April 6 in the US District Court of the Northern District of California in San Francisco against David Topkins. According to the charge, Topkins and his co-conspirators fixed the prices of certain posters sold online through Amazon Marketplace from as early as September 2013 until in or about January 2014.

Topkins also has agreed to pay a $20,000 criminal fine and cooperate with the department’s ongoing investigation. The plea agreement is subject to court approval. “Today’s announcement represents the division’s first criminal prosecution against a conspiracy specifically targeting e-commerce,” said Assistant Attorney General Bill Baer of the Department of Justice’s Antitrust Division. “We will not tolerate anticompetitive conduct, whether it occurs in a smoke-filled room or over the Internet using complex pricing algorithms. American consumers have the right to a free and fair marketplace online, as well as in brick and mortar businesses.”

FCC Commissioner Clyburn Names New Chief of Staff

Chanelle Hardy has been named chief of staff and media legal advisor to FCC Commissioner Mignon Clyburn, effective May 1. Hardy had been senior vice president for policy at the National Urban League and director of its Washington bureau. Hardy's resume also includes stints as the staff attorney at the Federal Trade Commission and chief of staff to former Rep Arthur Davis (D-AL). "Chanelle Hardy is a deeply committed public servant, who brings significant experience in policy analysis, advocacy, strategic partnerships and media analytics to my office," said Commissioner Clyburn. "She has been recognized for her strategic vision and effective coalition building over the years, and has worked effectively with organizations from every sector of society on important economic and social policy issues."

President Barack Obama’s press freedom legacy

[Commentary] President Barack Obama took office in 2009 promising to make his Administration the most transparent in American history. New York Times national security correspondent David Sanger, for one, says he’s failed. “This is the most closed, control freak administration I’ve ever covered,” said Sanger in a 2013 CPJ report, “The Obama Administration and the Press.” The report’s author, former Washington Post Executive Editor Leonard Downie, Jr., declared, “The administration’s war on leaks and other efforts to control information are the most aggressive I’ve seen since the Nixon administration.” As journalists often note, the Obama Administration has prosecuted more leakers under the 1917 Espionage Act than all former presidents combined.

With less than two years remaining in his Administration, there are still actions the President can take to strengthen transparency at home and increase US influence abroad, particularly advocacy on behalf of journalists facing persecution and violence as a result of their reporting. Journalists facing persecution and repression depend on the support of the US government, now more than ever. That is the most compelling reason why President Obama must use his remaining time in office to increase transparency at home and reinforce the country’s influence abroad. It’s not too late for the president to make this his press freedom legacy.

Court mulls revealing secret government plan to cut cell phone service

A federal appeals court is asking the Obama Administration to explain why the government should be allowed to keep secret its plan to shutter mobile phone service during "critical emergencies." The Department of Homeland Security came up with the plan -- known as Standing Operating Procedure 303 -- after cellular phones were used to detonate explosives targeting a London public transportation system. SOP 303 is a powerful tool in the digital age, and it spells out a "unified voluntary process for the orderly shut-down and restoration of wireless services during critical emergencies such as the threat of radio-activated improvised explosive devices."

The US Court of Appeals for the Federal Circuit in February sided with the government and ruled that the policy did not need to be disclosed under a Freedom of Information Act request from the Electronic Privacy Information Center. The court agreed with the government's citation of a FOIA exemption that precludes disclosure if doing so "could reasonably be expected to endanger the life or physical safety of any individual." EPIC asked the court to revisit its ruling, arguing that the decision, "if left in place, would create an untethered 'national security' exemption'" in FOIA law. On April 3, the court ordered the government to respond -- a move that suggests the appellate court might rehear the case.

FAA Computer Systems Hit by Cyberattack Earlier In 2015

Hackers earlier in 2015 attacked a Federal Aviation Administration network with malicious software, agency officials said. In early February, FAA discovered "a known virus" spread via e-mail on "its administrative computer system," agency spokeswoman Laura Brown said. "After a thorough review, the FAA did not identify any damage to agency systems," she added. An upcoming competition among contractors to help run an FAA cybersecurity center might be altered as a result of the incident, according to an April 2 interim award notice that casually mentioned the attack.

FAA drew up a short-term agreement for incumbent contractor SRA International without reviewing competitors' services to avoid disrupting operations while preparing a new solicitation, according to the notice. "Due to a recent cyberattack, the FAA requires additional planning time to determine the impact to the competitive procurement's requirements," agency officials said in the notice. SRA will continue to support the so-called Cyber Security Management Center Security Operations Center until Feb. 29, 2016, if necessary, they said. After identifying the malware, "the agency immediately took steps to block and contain the virus and clean any affected computers,” Brown said. The attack was limited to the administrative computer system, officials said.

Contractors Could Get New Rules for Handling Sensitive Government Data

Private sector government contractors may soon be subjected to new rules for managing sensitive federal information. The National Institute of Standards and Technology recently published draft requirements for federal and nonfederal groups with access to “controlled unclassified information” -- a subset of confidential information that, while not classified, must still be protected.

The Commerce Department agency is accepting public comments on the draft until May 12, 2015. These requirements are meant to supplement rules under the Federal Information Security Management Act, which governs how federal agencies (and contractors, on their behalf) manage their own data in their own information systems, according to NIST fellow Ron Ross. The new guidance aims to cover situations not explicitly mentioned in FISMA -- for instance, when state and local governments, colleges and universities, or private organizations happen to receive federal CUI data through a contract or an agreement. "The concern is that there are appropriate levels of protection for information when it's in that type of [environment] -- we call that a nonfederal information system in a nonfederal organization," Ross said

AT&T's Challenge To Developers: Inventive Apps For The Disabled

AT&T's latest app challenge is offering up $100,000 for technology specifically aimed at aiding those with disabilities. In a partnership with NYU's Assistive Technology and Ability Lab, AT&T is putting out a call to developers to create new apps or devices aimed at people who are disabled. Submissions will be due at the beginning of July, and AT&T will announce the winner on July 26, the 25th anniversary of the Americans With Disabilities Act. Technology for the disabled is often created without the input of the people whom it's supposed to serve. AT&T didn't want to operate in a vacuum. To ensure that the finalists appeal to a broad audience, the judging panel includes city officials, experts in the field of assistive tech and disability, people from AT&T, and the four exemplars.

NAB Commits to New Riverfront Home

The National Association of Broadcasters has announced it has a deal with a Washington developer to move its headquarters closer to Capitol Hill and the Federal Communications Commission (as well as a baseball's throw away from Nationals Park). NAB used to be only a few blocks from the FCC, but the commission itself moved closer to the Capitol and the Potomac riverfront in the 1990s. NAB says it has a deal to purchase a completed headquarters in the Capitol Riverfront neighborhood (South Capitol and M Street, SE) with a move-in date by fall 2018 and ground-breaking by spring 2016. The area is undergoing a renaissance, driven in part by the location of the baseball stadium along the waterfront.

Google in talks with mobile operators for cheap overseas calls

Google is in talks towards a deal with Hutchison Whampoa, the owner of the mobile operator Three, that will allow Americans to use their phones abroad at no extra cost, industry sources have disclosed. The two giants are discussing a wholesale access agreement that would become an important part of Google’s planned attempt to shake-up the US mobile market with its own network. It is understood that Google aims to create a global network that will cost the same to use for calls, texts and data no matter where a customer is located. By linking up with Hutchison, it could gain wholesale access to mobile service in the UK, Ireland, Italy and several more countries where the Hong Kong conglomerate owns mobile networks.

Sources said Hutchison was a natural partner for Google in the plan, because it has also sought to eliminate roaming charges for Three customers. Google announced its plans to launch a mobile network in March. It will not build mobile masts but rely on wholesale deals to use existing infrastructure both at home and abroad. The company described it as a “small scale” project. Industry analysts expect Google to use its network to put pressure on the pricing of America’s biggest mobile operators, AT&T and Verizon, who enjoy higher profit margins than their European counterparts. It could also use the project to encourage operators to invest in new technology to improve mobile coverage via Wi-Fi networks.