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  2. March 2016

March 2016

CLEC End Game is Ethernet Re-Regulation

There’s no question that copper-based Time-division multiplexing services are in rapid decline. AT&T’s access lines (copper last mile connections) are no exception – they have declined by almost 65% (more than 30 million lines, if you can believe it) since 2009. Yet, despite all the evidence pointing to the end of the copper era, the competitive local exchange carriers (CLECs) seem hell bent on championing the imposition of greater regulation on quickly disappearing copper-based TDM special access services.

On its face, this appears to be a peculiar use of energy, resources, and political capital. And, sure enough, recent statements by the CLECs participating in this proceeding confirm that their agenda has changed. Notwithstanding that this proceeding was initiated to address the regulatory status of TDM services, CLECs are now asking the Federal Communications Commission to take a sharp left turn and use this proceeding to impose old fashioned, monopoly-era rate regulation on incumbent local exchange carriers’ (ILECs’) last mile fiber Ethernet connections. The Ethernet market is already robustly competitive, and the coming 5G revolution will provide even more opportunities for competition to flourish. As the cable industry has astutely pointed out, imposing unnecessary rate regulation on a highly competitive market will only undercut everyone’s incentives to invest in facilities-based infrastructure, creating dependence on below-cost ILEC facilities. And this will, ironically, reduce real competition in the Ethernet market. The CLECs attempt to transform this proceeding into something that it’s not should be rejected.

FCC Releases Broadband Deployment Data

The Federal Communications Commission’s Wireline Competition Bureau released data on fixed broadband deployment as of June 30, 2015. These data were collected through FCC Form 477.

Groups urge civil rights focus for FCC privacy rules

Several major civil rights groups signed on to a letter asking the Federal Communications Commission to consider the way privacy issues affect traditionally marginalized communities while crafting privacy rules for Internet providers. “The Commission should carefully examine the privacy interests of historically disadvantaged communities,” the groups said. “Use of consumers’ online information can have disproportionate negative effects on the communities that our organizations represent.”

The letter was signed by 24 tech and civil rights groups, including the NAACP and the National Council of La Raza. They urged the FCC to consider a set of principles they released in 2014 on how to maintain protect civil rights in the use of big data. The groups also said that privacy protections implemented by the FCC should apply equally to wired and wireless broadband, since black and Hispanic Americans more heavily use mobile connections.

Small ISP Enhanced Transparency Waiver Passes House

The House has unanimously passed the Small Business Broadband Deployment Act, which extends the Federal Communications Commission's exemption of smaller Internet service providers from the enhanced transparency rules under its new Open Internet order. "The bill protects small businesses from burdensome regulations, and allows small Internet Service Providers (ISPs) to focus on expanding networks, deploying broadband, improving connectivity for rural consumers, and creating jobs," said Rep Bob Latta (R-OH) after the vote.

After reaching a compromise on language, the House Energy & Commerce Committee voted unanimously to approve an amended version of the bill in Feb. The definition of small business is 250,000 subscribers (the FCC exemption applied to systems with 100,000 and fewer) and the exemption sunsets after five years. The FCC is also directed to report to the Committee, and the Senate Commerce Committee, which also has principal jurisdiction over the FCC, within six months of enactment its recommendations for whether the exemption should be permanent and whether that 250,000 figure should be adjusted. Republicans had wanted a permanent waiver and Democrats a term-limited one. Democrats won that one, though with the report caveat. The FCC recently extended the exemption for a year and put off a decision about making it permanent while it collected more info on the impact of the enhanced transparency requirements on small businesses, but Congress doesn't want to wait that long. The bill must now pass the Senate and get the President's signature.

New York City’s Public Wi-Fi Raises Privacy Concerns

New York City’s new public Wi-Fi network, LinkNYC, raises several privacy concerns for users, the New York Civil Liberties Union announced after sending a letter to the Office of the Mayor. CityBridge, the company behind the LinkNYC kiosks that have begun replacing phone booths in Manhattan, retains a vast amount of information about users – often indefinitely – building a massive database that carries a risk of security breaches and unwarranted NYPD surveillance. “New Yorkers’ private online activities shouldn’t be used to create a massive database that’s within the ready grasp of the NYPD,” said Donna Lieberman, executive director of the NYCLU. “Free public Wi-Fi can be an invaluable resource for this city, but New Yorkers need to know there are too many strings attached.”

In order to register for LinkNYC, users must submit their e-mail addresses and agree to allow CityBridge to collect information about what websites they visit on their devices, where and how long they linger on certain information on a webpage, and what links they click on. CityBridge’s privacy policy only offers to make “reasonable efforts” to clear out this massive amount of personally identifiable user information, and even then, only if there have been 12 months of user inactivity. New Yorkers who use LinkNYC regularly will have their personally identifiable information stored for a lifetime and beyond.

Will the First Amendment survive the information age?

[Commentary] The First Amendment has survived plenty of change in 225 years. Speech, press and expression rights have been expanded and hardened as they’ve adapted to a succession of technologies, the telegraph, print, radio and television. Those who follow the topic most closely, though, say the information age started a whole new era. Here are key questions likely to shape the future of the First Amendment:

How will the Internet alter free speech practices? There’s still a lot of unsettled law about how speech and expression play out in a Facebook world.
Who’s advocating for the public’s interest? We should watch which players and what forces are trying to influence the rules as a changing of the media guard takes place.
Who controls how information moves? Just as important as who creates content will be who distributes it, which is why the net neutrality rules approved by the Federal Communications Commission last year and now under appeal drew comment from a who’s who of tech companies, from Netflix and Google to Comcast and Verizon.
What will expanding business rights mean? A series of First Amendment rulings sought by corporations has freed them from limits in such areas as advertising, ingredient labeling and, of course, political contributions.
And finally, where do you stand? Here the news is encouraging: The First Amendment’s simple, 45-word summary covering religion, speech, press, petition and assembly is deeply woven into the American civil fabric.

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