July 28, 2015 (AT&T-DirecTV; Broadband Stimulus)
BENTON'S COMMUNICATIONS-RELATED HEADLINES for TUESDAY, JULY 28, 2015
House Communications Subcommittee hearing, "Continued Oversight of the Federal Communications Commission -- https://www.benton.org/node/223243
Policy Seminar from the Free State Foundation, "Implementing Real Regulatory Reform at the FCC" -- https://www.benton.org/node/224298
OWNERSHIP
FCC's Pai Calls AT&T-DirecTV Conditions 'Forced Tribute'
Commissioner Clyburn Calls For Carriage/Access Rules Inquiry
FCC Public Notice Accepting Charter/TWC/Bright House Merger Applications for Transfer - public notice [links to web]
CBO Scores Senate Bill 1182 on JSAs - research [links to web]
INTERNET/BROADBAND
Wired to Fail
Chairman Wheeler to Hill: ISPs Have Certainty to Invest
AT&T: FCC Fine Is 'Indefensible,' 'Coercion'
WIRELESS/SPECTRUM
Groups Ask FCC to Revamp Auction Reserve
FCC’s Pai Pans Wireless Repack of TV Stations [links to web]
How to Feed a Data-Hungry Public - Genachowski, McDowell op-ed
Kill Switch Is No Dead Certainty to Stop Phone Theft [links to web]
Denver tech community ponders morality of building Internet of Things [links to web]
PRIVACY/SECURITY
NSA promises to delete old records [links to web]
950 million Android phones can be hijacked by malicious text messages [links to web]
Google Rolls Out New Consent Policy in European Union [links to web]
CONTENT
New Court Evidence Reveals Hollywood’s Plan to Smear Google
ESPN will likely be sold directly to consumers in a few years [links to web]
OTT: A Net Neutrality Can of Worms? [links to web]
TELEVISION
CBO Scores Senate Bill 1182 on JSAs - research [links to web]
Comcast and Discovery Announce Long-Term Distribution Deal [links to web]
Retransmission War Heats Up [links to web]
JOURNALISM
A Clinton Story Fraught With Inaccuracies: How It Happened and What Next? - NYT's Public Editor [links to web]
Can The New York Times Salvage Its Clinton Coverage? - Media Matters for America analysis [links to web]
RTDNA Research: Newsroom employment rises - press release [links to web]
Where Are All the Minority Journalists? [links to web]
ELECTIONS & MEDIA
Donald Trump is a superhero – but not in a good way - Reuters op-ed [links to web]
A Clinton Story Fraught With Inaccuracies: How It Happened and What Next? - NYT's Public Editor [links to web]
GOVERNMENT & COMMUNICATIONS
The Secret Agents Who Stake Out the Ugliest Corners of the Internet [links to web]
TRANSPORTATION
Merely receiving a phone notification is enough to distract a driver [links to web]
ACCESSIBILITY
Bay Area tech innovators honored for helping the disabled [links to web]
STORIES FROM ABROAD
Issues Mount as Negotiators Gather to Wrap Up Trans-Pacific Trade Pact [links to web]
China to End Ban on Videogame Consoles [links to web]
Google Rolls Out New Consent Policy in European Union [links to web]
OWNERSHIP
FCC'S PAI CALLS AT&T-DIRECTV CONDITIONS 'FORCED TRIBUTE'
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Commissioner Ajit Pai of the Federal Communications Commission outlined his partial dissent from the AT&T-DirecTV merger approval on July 27 with a lengthy statement. Commissioner Pai approved the underlying merger, as did all the commissioners. But he dissented from the "17 pages of conditions" put on the deal. Commissioner Pai has long argued against "regulating by condition" -- applying conditions that serve a particular regulatory agenda but are not merger-specific -- and suggested the FCC's demands on the deal were not supported and constituted a regulator "wish list" that had nothing to do with deal at hand. "These conditions are the forced tribute that the company must offer to mollify the Capitol," he said. In fact, Commissioner Pai said that the deal needed no conditions, and pointed to the Justice Department approval of the deal as not threatening competition. While Commissioner Mignon Clyburn praised the condition mandating high-speed, low-cost broadband to low-income households, Commissioner Pai saw it very differently. "When the Commission instructs a regulated entity that it must offer a particular service for no more than a particular price, there is a name for that: It is called rate regulation." He also says the FCC condition preventing the combined company from discriminating against unaffiliated over-the-top providers is not justified. In fact, he says, the evidence suggests the opposite, that any attempt to hamper broadband customers access to OTT providers would hurt the company, not help it.
benton.org/headlines/fccs-pai-calls-att-directv-conditions-forced-tribute | Broadcasting&Cable | The Hill
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COMMISSIONER CLYBURN CALLS FOR CARRIAGE/ACCESS RULES INQUIRY
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Commissioner Mignon Clyburn of the Federal Communications Commission has called on FCC Chairman Tom Wheeler to launch an inquiry into the program access and carriage rules and ongoing barriers to independent and diverse programming in the wake of the FCC's decision to approve the AT&T/DirecTV deal. Those are the rules meant to insure nondiscriminatory access for distribution outlets to programming and programmers to distribution outlets. Commissioner Clyburn voted for the deal, and said she believed the public interest benefits of the conditions and commitments on broadband deployment and affordable stand-alone broadband for lower income residents. But she said she is concerned with the potential impact of the deal on smaller carriers and independent programmers given that the combined company will have over 25 million video subs. The American Cable Association, in particular, has expressed concerns about access to programming and the price of that programming and sought conditions on the deal to protect against possible abuses. While Commissioner Clyburn said that the FCC analysis concluded the deal would not demonstrably worsen those "challenges," she said it was time to "reevaluate our program access rules" and their impact on diverse and independent programmers. Not surprisingly, the American Cable Association was pleased.
benton.org/headlines/commissioner-clyburn-calls-carriageaccess-rules-inquiry | Broadcasting&Cable
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INTERNET/BROADBAND
WIRED TO FAIL
[SOURCE: Politico, AUTHOR: Tony Romm]
When it came to funding broadband projects, the Rural Utilities Service never found its footing in the digital age. Sometimes, RUS ignored its rural mission by funding high-speed Internet in well-wired population centers. Sometimes, it chose not to make any loans at all. Sometimes, RUS broadband projects stumbled, or failed for want of proper management; loans went delinquent and some borrowers defaulted. Yet despite years of costly missteps that left millions of Americans stranded on the wrong side of the digital divide, a stable of friendly lawmakers swallowed their doubts about RUS and made sure the politically protected agency wasn’t cut out of the historic stimulus effort. It should come as little surprise, then, that four years and four directors later, RUS has failed to deliver on the promise of the stimulus bill. Roughly half of the nearly 300 projects that RUS approved as part of the 2009 Recovery Act have not yet drawn down the full amounts they were awarded. All RUS-funded infrastructure projects were supposed to have completed construction by the end of June, but the agency has declined to say whether these rural networks have been completed. More than 40 of the projects that RUS initially approved never got started at all, raising questions about how RUS screened its applicants and made its decisions in the first place. But a bigger, more critical deadline looms for those broadband projects still underway: If these networks do not draw all their cash by the end of September, they will have to forfeit what remains. In other words, they altogether may squander as much as $277 million in still-untapped federal funds, which can’t be spent elsewhere in other neglected rural communities. And either way, scores of rural residents who should have benefited from better Internet access — a utility that many consider as essential as electricity — might continue to lack access to the sort of reliable, high-speed service that is common in America’s cities.
benton.org/headlines/wired-fail | Politico
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CHAIRMAN WHEELER TO HILL: ISPS HAVE CERTAINTY TO INVEST
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Federal Communications Commission Chairman Tom Wheeler plans to tell Congress that a court's denial of Internet service provider efforts to stay part of the FCC's network neutrality order means those companies have "the certainty and economic incentive to build fast and competitive broadband networks." ISPs have argued that new interconnection-targeted complaint processes and a general Internet conduct standard will work against such investment, but according to Chairman Wheeler's testimony for a House Communications Subcommittee FCC oversight hearing, the Chairman cites statements by the CEOs of T-Mobile, Sprint, Cablevision, Charter and Frontier that Title II reclassification "does not discourage their investment." He also said that announcements by ISPs including Comcast, Cox, Time Warner Cable and others that they were expanding broadband service suggested "healthy" network investment would continue. Chairman Wheeler cited the court's denial of the stay as a recent FCC accomplishment, along with the rules themselves. Chairman Wheeler says the broadcast incentive auction had more moving parts than a Swiss watch, but that it is still on track for a first-quarter 2016 launch. The FCC plans to vote Aug. 6 on the incentive auction framework and bidding rules. Chairman Wheeler reiterates that the reserve would be 30 MHz, but only "provided that eligible bidders pay their fair share of auction costs." He also said the FCC would issue a notice of proposed rulemaking in the fall on broadband privacy, or what he called the "non-monetary cost" of using broadband -- broadband privacy oversight moved from the Federal Trade Commission to the FCC with the reclassification of ISPs under Title II common carrier regulations.
benton.org/headlines/chairman-wheeler-hill-isps-have-certainty-invest | Broadcasting&Cable
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AT&T VS FCC FINE
[SOURCE: Multichannel News, AUTHOR: John Eggerton]
AT&T has come out swinging at the Federal Communications Commission over the agency's proposed $100 million fine for allegedly violating the transparency rule in the FCC's 2010 network neutrality order, calling it "unprecedented and indefensible" -- and in part unconstitutional -- and saying a court will throw it out if it is imposed. AT&T wants the FCC to withdraw the proposed fine. The FCC proposed the fine in June 2015, and this is AT&T's chance to respond before the FCC decides whether to rule the apparent liability an actual one. Signaling that slowing broadband speeds is not an acceptable business model, the FCC’s Enforcement Bureau on June 17 proposed fining AT&T Mobile $100 million over its maximum bit rate approach to what AT&T says is a small minority of unlimited plan users whose heavy use could impair others’ online experience. Swallowing that fine was not one of the conditions on the AT&T-DirecTV deal, which was obvious from AT&T's response Monday (July 27) to the FCC notice of apparent liability (NAL). It called the FCC decision arbitrary, excessive and beyond its statutory authority.
benton.org/headlines/att-fcc-fine-indefensible-coercion | Multichannel News | The Hill
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WIRELESS/SPECTRUM
GROUPS ASK FCC TO REVAMP AUCTION RESERVE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Public Knowledge, Save Wireless Choice, and T-Mobile lobbyists and former Rep Henry Waxman are pushing the Federal Communications Commission to revamp its broadcast spectrum forward auction reserve trigger to prevent it from being gamed by dominant wireless carriers. Currently, the FCC is planning to set aside 30 MHz of spectrum for monodominant carriers. Public Knowledge's Harold Feld pointed out on a conference call with reporters that they would prefer a larger reserve, but in any event says the FCC should no longer condition that reserve on reaching a spectrum clearing and total bidding financial targets that the AWS-3 spectrum auction's success has essentially rendered unnecessary. The groups argue that AT&T and Verizon would be able to game those triggers and extend the auction until, by the time the reserve is triggered, competitive carriers won't be in a position, or as good a position, to take advantage of it, which Waxman says would run counter to the intent of Congress in the spectrum auction legislation that it promote wireless competition. Feld likened the issue to the dominant carriers being able to hack the FCC's computer model for the auction to advantage themselves. The commission was scheduled to vote on its reserve proposal July 16, but put that vote off until Aug. 6. Feld said he understood the FCC's reluctance to start adjusting the auction software and the staff's inclination to just "put it to bed." But he also said that given that T-Mobile had shown the double-trigger for the reserve could be gamed, it clearly would be gamed. "Why wouldn't you give yourself an advantage through strategic bidding," he asked.
He said that they had pressed their case to the commissioners that while it was a tough call, including politically, they should not let the work put into coming up with the reserve to be "washed away."
benton.org/headlines/groups-ask-fcc-revamp-auction-reserve | Broadcasting&Cable
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HOW TO FEED A DATA HUNGRY PUBLIC
[SOURCE: Wall Street Journal, AUTHOR: Julius Genachowski, Robert McDowell]
[Commentary] Congressional hearings will take up the need for more wireless spectrum—the invisible radio frequencies that transmit information to and from mobile devices. Auctioning government spectrum to fulfill this need would not only provide significant revenue for the Treasury; it would also greatly benefit data-hungry American consumers. And because these auctions take years to prepare and implement, now is the time to begin the work. Concepts in the Senate’s Wireless Innovation Act or the Wi-Fi Innovation Act in the House are a constructive place to begin. Congress can create financial incentives—such as allowing government agencies to share in auction proceeds—to encourage agencies like the Pentagon or the Transportation Department to relinquish spectrum that they aren’t efficiently using. But if the agencies balk, Congress should make them give it up. Congress should also consider spectrum sharing. The FCC proposed an idea, endorsed last year by the White House panel of science and technology advisers, to use database technology that would enable the sharing of radio frequencies among commercial broadband, military and other government systems. Spectrum sharing would benefit the armed services, helping to reduce the growing gap between communications technologies available to consumers and those available to our troops. It might also reduce Pentagon equipment costs. Unlicensed spectrum, for which government permission isn’t required for consumers to use, is another opportunity. If we fail to adopt a plan to transfer federal spectrum to private users, policy makers may inadvertently undermine US competitiveness and job creation. Keeping discussions bipartisan and focused on solving problems through investment, innovation, job growth and new revenue for the Treasury will best ensure that new technologies pioneered in the US are first enjoyed by US consumers.
[Genachowski is a managing director at the Carlyle Group and former chairman of the Federal Communications Commission. McDowell, a former FCC commissioner, is a partner at Wiley Rein LLP and a senior adviser to Berenson]
benton.org/headlines/how-feed-data-hungry-public | Wall Street Journal
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CONTENT
NEW COURT EVIDENCE REVEALS HOLLYWOOD'S PLAN TO SMEAR GOOGLE
[SOURCE: Wired, AUTHOR: Davey Alba]
Over the years, Google and Hollywood have fought bitterly over the Stop Online Piracy Act, an anti-piracy bill that would have granted the US government and private corporations extraordinary power to battle copyright infringement on the web. It failed to pass in 2012. But it lives on. The Motion Picture Association of America is still seeking to revive it, and with Google still very much opposed to the idea, the MPAA is apparently doing its best to make life difficult for the internet giant. Back in December, the search giant complained in a blog post of efforts by the MPAA to push an investigation of Google through the office of Mississippi Attorney General Jim Hood. Now, in a new court filing, the company submitted additional evidence that appears to show just how deep the relationship between the attorney general and the Hollywood studios goes. An e-mail sent between AG Hood’s staffers and Brian Cohen, a director of external state government affairs for the MPAA, describes a coordinated plan to hurt Google, including a recommendation that “NewsCorp… develop and place an editorial in the WSJ emphasizing that Google’s stock will lose value in the face of a sustained attack by AGs”; the suggestion that NBC’s government relations department could help place an anti-Google segment on the today show; and that AG Hood’s office look into hiring a PR firm “to create an attack on Google (and other players who are resisting AG efforts to address online piracy).”
benton.org/headlines/new-court-evidence-reveals-hollywoods-plan-smear-google | Wired
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