October 2015

INTERNET/BROADBAND

SENS MARKEY, FRANKEN SEEK TO HEAD OFF NET NEUTRALITY-BLOCKER
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Sens Ed Markey (D-MA) and Al Franken (D-MN) are urging Republican members of Congress not to try and block the Federal Communications Commission's new network neutrality rules via a final budget agreement. There was no such rider on the stop-gap appropriations bill that pushed off a final bill until at least Dec 11, but it could return on a longer-term bill. Some Republican members of Congress have been trying to use defunding rules implementation via the budget or other legislative maneuvers to block Title II reclassification. "Without this critical consumer protection, Republicans would give an unprecedented amount of power and influence to Internet Service Providers, allowing them to discriminate against their users and choose the kinds of the content they provide," said Sen Franken's office. "This dangerous rider and push by Congressional Republicans undermines the right of Americans to have access to a free and open internet."
benton.org/headlines/sens-markey-franken-seek-head-net-neutrality-blocker | Broadcasting&Cable | ars technica
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ZUCKERBERG ON NET NEUTRALITY
[SOURCE: Los Angeles Times, AUTHOR: Russ Mitchell]
Asked about network neutrality, Facebook’s Mark Zuckerberg turned to sales of apples -- the kind you eat -- to explain his support for the idea. He noted that it would be illegal to sell "apples to white men for a dollar" while selling apples "to black women for two dollars. ... Net neutrality is kind of like that. If the person selling the apples wants to donate to a food bank for free," he continued, "there’s no laws against that." Zuckerberg's thoughts on net neutrality came amid a wide-ranging discussion at Vanity Fair magazine’s annual New Establishment Summit. Facebook’s founder and chief executive said that although smartphones are the central means of electronic communication now, they’re "not the end of the line. There are reasons to believe the next major computing platform is going to be more connected to vision."
benton.org/headlines/facebooks-mark-zuckerberg-compares-network-neutrality-civil-rights-laws | Los Angeles Times
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MORE COLORADO COMMUNITIES WILL ASK VOTERS TO RECLAIM LOCAL AUTHORITY
[SOURCE: Institute for Local Self-Reliance, AUTHOR: Hannah Trostle]
This November 3rd, more than ten communities in Colorado will attempt to escape the local-authority-revoking effects of a Colorado General Assembly bill (SB 152) by overriding its restrictions at the polls: Archuleta County, Bayfield, Boulder Valley School District, Durango, Fort Collins, Ignacio, La Plata County, Loveland, Moffat County, Pitkin County, San Juan County, and Silverton. Many of these communities participated in a $4.1 million fiber infrastructure project which currently provides public entities (municipal buildings, libraries, and schools) with cheap, plentiful Internet access. The 10 year old law in question, SB 152, prevents local governments from taking full advantage of local fiber assets by removing local authority to offer any services that compete with incumbents; voters must reclaim that authority through a referendum. Under the restrictions, localities cannot partner with local Internet service providers to provide high-speed Internet to community members via publicly owned infrastructure or create municipal fiber-to-the-home networks.
benton.org/headlines/more-colorado-communities-will-ask-voters-reclaim-local-authority | Institute for Local Self-Reliance
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STUDY: MARKET 'TOO DISMISSIVE' OF GOOGLE FIBER
[SOURCE: Multichannel News, AUTHOR: Jeff Baumgartner]
While it remains questionable as to whether Google Fiber can scale up its network deployments and put the hurt on incumbents over the long term, a new study from Bernstein Research suggests that Wall Street “is too dismissive” of the initiative's true potential. “We have increased conviction that Google’s main motivation to deploy Google Fiber is its belief that it has a better-than-good chance to build a profitable local-access competitor,” Carlos Kirjner, a senior analyst with the firm, noted in a study. He also reiterated his view that Google Fiber’s primary aim is not to influence policymakers or to force cable operators and telecommunication companies to accelerate upgrades, but does acknowledge that incumbents such as AT&T, Comcast, CenturyLink and Cox Communications have moved ahead with targeted fiber-based gigabit offerings.
benton.org/headlines/study-market-too-dismissive-google-fiber | Multichannel News
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SPECTRUM/WIRELESS

WHY INFLEXIBLE BUDGET RULES ARE KEEPING LAWMAKERS FROM SELLING BILLIONS OF DOLLARS WORTH OF GOVERNMENT AIRWAVES
[SOURCE: Politico, AUTHOR: Kate Tummarello]
The federal government could earn tens of billions of dollars by selling a stockpile of unneeded but highly coveted airwaves, but Congress' own inflexible budgeting rules are depriving taxpayers of a potential windfall, say regulators and lawmakers on both sides of the aisle. Under the rule set in place after the sequester negotiations of 2011, Congress won't approve any new spending without an equal amount of increased revenue. And the Congressional Budget Office is charged with coming up with that final price tag. In 2012, when Congress passed a bill authorizing the Federal Communications Commission to auction off airwaves, or spectrum, to fuel the country's ever-expanding cellphone networks, the CBO was uncertain how intense the demand would be weighed against the cost of relocating users to other airwaves. The CBO pegged the potential profit to the government at $15 billion over the next decade. That proved to be a massive underestimate, as the first auction earlier this year brought in close to double that for the government. A second auction, scheduled for 2016, of valuable frequencies to be relinquished by TV stations is likely to bring in another $30 billion to $40 billion in revenue. Now, with companies like AT&T and T-Mobile desperate to get their hands on more of these airwaves, lawmakers want to capitalize on demand and sell off frequencies that the Department of Defense and Department of Transportation no longer need. But despite recent evidence of red-hot sale prices, the CBO won't reconsider its 10-year estimate, frustrating lawmakers, lobbyists and FCC commissioners alike.
benton.org/headlines/why-inflexible-budget-rules-are-keeping-lawmakers-selling-billions-dollars-worth | Politico
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HOUSE PANEL AGREES SPECTRUM PLANNING IS CRUCIAL
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The House Communications Subcommittee is busy on the government spectrum front, signaling that the Federal Communications Commission needs to help come up with a plan for auctioning free-up government spectrum and identifying potential new bands for clearing and sharing. That was the subject of a House Communications Subcommittee hearing, where there are a number of bills in the works to goose the FCC effort and incentivize government agencies to fully engage in the process. Among the takeaways from the hearing was that sharing, rather than relocating, is a good short-term solution, but that, long-term, there needs to be a planning and research and development and that it is key for agencies to be shown the upside of cooperating.
benton.org/headlines/house-panel-agrees-spectrum-planning-crucial | Broadcasting&Cable
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COMMISSIONER O'RIELLY SPEECH BEFORE THE COMPETITIVE CARRIER ASSOCIATION
[SOURCE: telecompetitor, AUTHOR: Joan]
If the Federal Communications Commission were to create a mobility fund as it converts today’s voice-focused high-cost Universal Service program into a broadband-focused Connect America Fund program, that fund most likely would not look like “anything previously envisioned,” said FCC Commissioner Michael O’Rielly. Commissioner O’Rielly made his remarks at the Competitive Carrier Association 2015 Annual Convention. The remarks build on comments that Commissioner O’Rielly made in September that strongly suggested there might be no mobility fund in the ongoing CAF program. Commissioner O’Rielly noted the CAF program is not allowed to provide support for high-cost areas that are overlapped by an unsubsidized competitor. And “[w]ith nearly all of the nation covered by large wireless providers, the areas eligible for a mobility fund [if there were to be one] would be considerably fewer than just a few years back.” While acknowledging that large carriers may not serve every location in an area, O’Rielly said “that is viewed as a factual matter to be resolved through a challenge process.” Commissioner O’Rielly also noted that he understood the argument that “without ongoing support, service in areas that are currently covered could diminish.” He added, though, that “most of the expense is in the installation of the towers and the initiation of service, rather than the ongoing maintenance of them.” Accordingly, he said, “I still expect that the commission’s focus will remain on targeting support to those areas that are truly unserved.”
benton.org/headlines/fcc-commissioner-orielly-unlikely-event-there-caf-mobility-fund | telecompetitor | O'Rielly Speech
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PRIVACY

ANDROID ADWARE WIELDS POTENT ROOT EXPLOITS TO GAIN PERMANENT FOOTHOLD
[SOURCE: ars technica, AUTHOR: Dan Goodin]
Researchers have uncovered yet another Android-based adware campaign targeting people who download what they believe are trusted titles from websites and other third-party app stores. The apps use repackaged icons to disguise themselves as popular titles and are offered for download through pop-up ads on visited websites and in-app promotions, according to researchers from security firm FireEye. Once installed, the apps exploit as many as eight separate Android vulnerabilities that allow the apps to gain deep root access privileges. From there, the apps launch code libraries mimicking legitimate Android services to gain a permanent foothold on infected phones. The FireEye blog post is another reminder of the threats that come from Android apps available in third-party app stores. No doubt, Google's security vetting of apps is by no means perfect, but it does offer a level of protection that's generally not available elsewhere. Android users should make use of it whenever possible and remain highly suspicious of other sources.
benton.org/headlines/android-adware-wields-potent-root-exploits-gain-permanent-foothold | Ars Technica
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ELECTIONS AND MEDIA

DIGITAL MEDIA AND POLITICS
[SOURCE: Financial Times, AUTHOR: Shannon Bond]
Political common wisdom claims a campaign does not start until it runs its first television commercial. But in the 2016 US presidential race, the unexpected rise of candidates such as Bernie Sanders and Ben Carson, who are polling ahead of deeper-pocketed establishment rivals, is showing the power of digital tools that let campaigns reach voters without spending big bucks. Across the political field, candidates and interest groups are tapping social media, text messaging, online video and robust data to mobilise supporters, raise money and target their messages. “The merging of data with media buying has really levelled the playing field and allowed campaigns at all levels to punch above their weight. This is going to increasingly disrupt politics,” said Michael Beach, co-founder of Targeted Victory, a digital agency that handled Mitt Romney’s online efforts in 2012.
benton.org/headlines/digital-media-disrupts-us-money-politics | Financial Times
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DONALD TRUMP'S BOMBAST SEEMS TO BE WEARING OUT ITS WELCOME
[SOURCE: New York Times, AUTHOR: Ashley Parker, Amy Chozick]
Though Donald Trump still leads the Republican field in national polls, Trump’s ability to command both voter and news media attention simply by being his outlandish, bombastic self is starting to wane. The decline in attention for Trump seems particularly pronounced in the conservative news media outlets that carry influence over many Republican primary voters. Though many of the mainstream outlets favored by the Republican establishment -- most notably the editorial pages of The Wall Street Journal -- have always greeted Trump’s candidacy with a critical, if not disdainful eye, that discomfort has spread to the news media that speak to the populist base of the Republican Party, whose anger at Washington has helped fuel Trump’s rise. Fox News opinion commentators no longer go on breathlessly about Trump’s antics, and conservative talk-radio programs have moved on to fawn over Ben Carson, Carly Fiorina and Senator Ted Cruz (R-TX).
benton.org/headlines/donald-trumps-bombast-seems-be-wearing-out-its-welcome | New York Times
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WHAT EVER HAPPENED TO THAT TRUMP-FOX NEWS SUMMIT?
[SOURCE: Washington Post, AUTHOR: Erik Wemple]
[Commentary] The Donald Trump media story line of the week of Oct 5 -- idle chatter about the future of his campaign -- has supplanted the Donald Trump media story line of one week ago: The much discussed Trump-Fox News Summit that the network itself announced on Sept. 24: “FOX News has held every candidate in this race to the highest journalistic standards throughout our coverage,” said the Fox News statement, in part. “We believe a candid meeting about our differences is required and that any misunderstandings can be handled without compromising those standards.” Though the summit was supposed to take place sometime during the week of Sept 28, it didn’t go down, apparently. Michael Clemente, executive vice president of news at Fox News issued this statement: “The door is always open for Mr. Trump to meet with our senior editorial team to discuss any issues he may have with our coverage of his campaign. Mr. Trump continues to appear on Fox News and we haven’t changed a thing, so we don’t see any overwhelming need for a meeting at this time.”
benton.org/headlines/what-ever-happened-trump-fox-news-summit | Washington Post
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OWNERSHIP

FTC CHAIRWOMAN RAMIREZ TESTIFIES BEFORE CONGRESS ON LEGISLATION THAT WOULD ALTER THE FTC'S ROLE IN ADJUDICATING MERGER CASES
[SOURCE: Federal Trade Commission, AUTHOR: Press release]
Testifying on behalf of the Federal Trade Commission before the Senate Antitrust Subcommittee, FTC Chairwoman Edith Ramirez described the FTC's work to promote competition, and its concerns about proposed federal legislation would eliminate the FTC’s role in adjudicating some merger cases. Chairwoman Edith Ramirez described the proposed legislation -- known as the Standard Merger and Acquisition Reviews Through Equal Rules Act (SMARTER Act) -- as an unnecessary step that would remove a key tool the FTC has used successfully for many decades to promote competition and advance consumer welfare. “The current system has worked well for over one hundred years, and all indications are that it will continue to do so to the benefit of competition and consumers,” the testimony states. Describing the FTC’s creation by Congress in 1914 as an independent, bipartisan agency, Chairwoman Ramirez noted its ability to consider and decide cases as an expert tribunal, subject to review by a federal court of appeals. The testimony concludes that the proposed SMARTER Act legislation could undermine the beneficial role the FTC plays in merger enforcement, and cites several reasons why the legislation is unnecessary, including because there is no evidence of a difference in outcomes between merger cases handled by the FTC and those handled by the Department of Justice.
benton.org/headlines/ftc-chairwoman-ramirez-testifies-congress-legislation-would-alter-ftcs-role-adjudicating | Federal Trade Commission | FTC Prepared Testimony
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EMERGENCY COMMUNICATIONS

FIRSTNET TEAM ISSUES LIST OF CYBER CONCERNS
[SOURCE: nextgov, AUTHOR: Mohana Ravindranath]
A proposed broadband network for the nation's public-safety professionals must be robust against intrusions -- but not so much it prevents those professionals from accessing it in emergencies, according to a new notice from FirstNet, the federal group planning it. This is one of several requirements for the system's cyber protection, according to a new notice issued by FirstNet, an authority within the Commerce Department's National Telecommunications and Information Administration. Others include online and offline device monitoring, a strong identity access management system, and support for wearable devices in the era of "bring your own" technology. Against the backdrop of the recent Office of Personnel Management hack, which exposed personal information from more than 20 million people, "a cybersecurity solution that establishes a secure network at the cost of delays or needless hindrances is not workable, and neither is a solution that permits immediate access but fails to adequately secure data," the notice said.
benton.org/headlines/firstnet-team-issues-list-cyber-concerns | nextgov
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POLICYMAKERS

REP SHIMKUS EYES COMMUNICATIONS ACT UPDATE
[SOURCE: The Hill, AUTHOR: David McCabe, Mario Trujillo]
Rep. John Shimkus (R-IL) said he would try to tackle a Communications Act update if he runs for and wins the chairmanship of the House Commerce Committee after current Chairman Rep. Fred Upton (R-MI) steps down at the end of this Congress. "It's a great, exciting opportunity to try to bring competitive market forces to solving our nation's problems," he said while taping an episode of C-SPAN's "Communicators" program. "In the telecommunications world, what's fun there is it just moves so fast that we can't regulate it -- hence all the new gadgets and equipment. I would like to see the FCC work with us to try to deal with the Communications Act. You know, the bureau system there no longer meets the modern technological age, and if they joined us in trying to rewrite the Telecommunications Act that would be a blast." Communications and Technology Subcommittee Chair Greg Walden (R-OR), considered another likely candidate for the full committee gavel, has said he wants to update the law. But he's suggested that any update will have to take place in stages, rather than all at once. He has also said that the Federal Communication Commission's network neutrality rules make achieving any compromise much more difficult.
benton.org/headlines/rep-shimkus-says-hed-try-communications-act-update-if-he-wins-commerce-committee | Hill, The
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STORIES FROM ABROAD

MILLIONS OF FACEBOOK USERS HAVE NO IDEA THEY'RE USING THE INTERNET
[SOURCE: Quartz, AUTHOR: Leo Mirani]
It was in Indonesia three years ago that Helani Galpaya first noticed the anomaly. Indonesians surveyed by Galpaya told her that they didn’t use the Internet. But in focus groups, they would talk enthusiastically about how much time they spent on Facebook. Galpaya, a researcher (and now CEO) with LIRNEasia, a think tank, called Rohan Samarajiva, her boss at the time, to tell him what she had discovered. “It seemed that in their minds, the Internet did not exist; only Facebook,” he concluded. Since at least 2013, Facebook has been making noises about connecting the entire world to the Internet. But even Sheryl Sandberg, Facebook’s operations head, admits that there are Facebook users who don’t know they’re on the Internet. So is Facebook succeeding in its goal if the people it is connecting have no idea they are using the internet? And what does it mean if masses of first-time adopters come online not via the open web, but the closed, proprietary network where they must play by Facebook CEO Mark Zuckerberg’s rules? This is more than a matter of semantics. The expectations and behaviors of the next billion people to come online will have profound effects on how the Internet evolves. If the majority of the world’s online population spends time on Facebook, then policymakers, businesses, startups, developers, nonprofits, publishers, and anyone else interested in communicating with them will also, if they are to be effective, go to Facebook. That means they, too, must then play by the rules of one company. And that has implications for us all.
benton.org/headlines/millions-facebook-users-have-no-idea-theyre-using-internet | Quartz
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SMARTPHONE USERS IN EMERGING MARKETS DESERVE BETTER THAN A WATERED-DOWN INTERNET
[SOURCE: Washington Post, AUTHOR: Mark Surman]
[Commentary] We’ve grown accustomed to the Web as a sprawling and open place. It’s a public resource that creates economic opportunity and celebrates diversity of opinion. But this open Web -- the one many of us first experienced on our desktops -- is in danger. As more people migrate to smartphones, they’re discovering a closed Web. The mobile Web is too often a series of walled gardens, closed platforms, and apps that limit creativity. This Web renders users as only consumers, not creators, and can threaten the basic tenets of network neutrality. Simply lamenting the rise of a closed mobile Web won’t reverse the trend. If we want to empower billions of Web users and defend openness, we need to pursue two key solutions: equal-rating and web literacy education. We need a collection of companies, campaigns and curricula that genuinely invest in the right kind of access, in education, in openness and imagination. We need more players to join this crusade, or we won’t see the open Web people want.
[Mark Surman is executive director of the Mozilla Foundation]
benton.org/headlines/smartphone-users-emerging-markets-deserve-better-watered-down-internet | Washington Post
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LONGSTANDING SCHISM
[SOURCE: New York Times, AUTHOR: Mark Scott]
American and European officials working on a new agreement for the international transfer of digital data like social media posts and online search queries are at an impasse after two years of negotiations. And each side has the same excuse: It’s the other’s fault. An agreement, officials and industry executives say, would most likely reduce much of the legal uncertainty arising from the court’s landmark ruling. Both sides stress that the remaining sticking points are surmountable, and that a new data agreement is imminent. But they will not offer any sort of timetable, and negotiators say that longstanding hurdles, including disagreements over national intelligence agencies’ access to people’s online data, continue to hold them back.
benton.org/headlines/europe-us-clash-privacy-longstanding-schism | New York Times
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HOW MAX SCHREMS SCORED ON OWN GOAL BY TOPPLING SAFE HARBOR
[SOURCE: International Association of Privacy Professionals, AUTHOR: ]
[Commentary] Max Schrems may have won a victory in relation to Safe Harbor but he has lost the war as, presumably, he has still consented to Facebook's standard terms, which allow the continued transfer of his data to the US. Unwittingly, Max Schrems may actually have worsened the position for consumers who will now find business-to-consumer (B2C) companies relying more heavily on consumer consent for data transfers to the US. We may not see pop up boxes explicitly stating, “I consent to Facebook transferring my data to the US and sharing it with the NSA,” but deploying annoying pop-up boxes to gain consent for data transfer is an easy option for B2C companies looking for grounds to transfer data. Once consent has been obtained, the data controller need not consider tiresome issues such as putting in place protocols to protect EU data stored in the US or providing a right of redress for EU individuals in the courts. The consumer has simply traded their EU privacy rights for a product. How is this possibly a better deal for consumers?
[Nicola Regan (McKilligan) is senior partner with the Privacy Partnership in London]
benton.org/headlines/how-max-schrems-scored-own-goal-toppling-safe-harbor | International Association of Privacy Professionals
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Analysis

October 2015

Senate Digs Into Wireless Deployment

Corporations are disclosing more information about their political contributions, study says

UN agency backtracks, expresses “regret” over cyberviolence report

Should Rep Eshoo’s broadband bill be a regulatory shoo-in?

Verizon to raise price of grandfathered unlimited data plans by $20

Forrester: Half of Viewers Under 32 Won’t Pay for TV by 2025

October 8, 2015 (Cubs win! Cubs win!)

Facebook's Mark Zuckerberg compares network neutrality to civil rights laws

Rep Shimkus Says He’d Try Communications Act Update if he Wins Commerce Committee Chairmanship

Digital media disrupts US money politics