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  2. September 2016

September 2016

Tech Sparks Global Consensus, White House Official Says

David Edelman, special assistant to the president for economic and technology policy at the National Economic Council, said technology areas like cybersecurity, privacy, and network neutrality are winners in the international community.

Edelman said that the core principles behind the net neutrality rules — ones that some industry lobbyists and Republicans fought so vehemently in the United States — were widely adopted in other major economies. “Something was happening under our noses that I think wasn’t truly recognized in an international forum until this G20 [summit],” Edelman said. “The vast majority of G20 economies already had open internet protection on the books.” Republicans and some industry executives say the rules are an overreach that will squelch broadband innovation. Edelman disagrees. “As it turns out, the principles that were so controversial domestically were ones that had surprising international consensus,” he said, noting that Brazil, India and the European Union were all in the process of drafting open internet rules as policymakers in the United States debated the validity of the rules put forward by the Federal Communications Commission. “This is a remarkable evolution in a debate that reflected and became a part of the global consensus, certainly well before any would have said the issue is resolved domestically,” he added. The issue of privacy also reflects an area where, despite differences, the U.S. has been able to strike key agreements with allies because of domestic policy, Edelman said.

House Unanimously Clears Communications Act Update of 2016

The House of Representatives unanimously amended and approved the Communications Act Update Act of 2016 (S. 253). The bill contains eight Commerce Committee bills that have previously passed the House or have unanimously passed the committee. S. 253 now heads back to the Senate for final consideration. The bills included in the package are as follows (in order by Title of the amendment to S. 253):

1) The Federal Communications Commission Process Reform Act (H.R. 2583), sponsored by House Communications and Technology Subcommittee Chairman Greg Walden (R-OR). Previously passed the House November 16, 2015, by voice vote. The bill aims to increase transparency, efficiency, and accountability at the FCC.
2) The Federal Communications Commission Consolidated Reporting Act (H.R. 734), sponsored by House Majority Whip and committee member Rep. Steve Scalise (R-LA). Previously passed the House February 24, 2015, by a vote of 411 to 0. The legislation aims to reduce the reporting workload and increase efficiency at the FCC. The legislation would consolidate a number of existing reports required by law into a single, comprehensive report on the state of the communications marketplace.
3) The Small Business Broadband Deployment Act (H.R. 4596), sponsored by Chairman Walden. Previously passed the House March 16, 2016, by a vote of 411 to 0. The bill would support small Internet Service Providers (ISPs) by protecting them from the onerous reporting requirements included in the FCC’s Open Internet Order. The bill would extend the small business ISP exemption for providers with fewer than 250,000 subscribers for five years.
4) Kari’s Law Act of 2015 (H.R. 4167), sponsored by Rep. Louie Gohmert (R-TX). Previously passed the House May 23, 2016, by voice vote. The would require that any multi-line telephone system connects directly to 911 when dialed, even in instances where the phone requires the user to dial “9” to get an outside line.
5) Securing Access to Networks in Disasters Act (H.R. 3998), sponsored by Commerce Committee Ranking Member Frank Pallone, Jr. (D-NJ). Previously passed the House May 23, 2016, by a vote of 389 to 2. The bill would create requirements for mobile service providers during emergencies to ensure that consumers have access to networks during disasters, and requires the FCC and GAO to examine the resiliency of networks during these events. In addition, it amends the Stafford Act to ensure all categories of communications service providers may access disaster sites to restore service.
6) Anti-Spoofing Act of 2016 (H.R. 2669), introduced by Rep. Grace Meng (D-NY) and co-authored by committee members Rep. Leonard Lance (R-NJ) and Rep. Joe Barton (R-TX). Previously passed by the Commerce Committee September 21, 2016, by voice vote. The bill aims to strengthen the Truth In Caller ID Act and protect consumers from fraudulent actors and deceptive text messages by going after lawbreakers who seek to harass and defraud consumers. Passed unanimously by voice vote.
7) Amateur Radio Parity Act (H.R. 1301), sponsored by Rep. Adam Kinzinger (R-IL). Previously passed the House September 12, 2016, by voice vote. The bill would instruct the FCC to adopt rules that protect the rights of amateur radio operators to use radio equipment in deed-restricted communities.
8) Improving Rural Call Quality and Reliability (H.R. 2566), sponsored by Rep. David Young (R-IA). Previously passed by the Commerce Committee September 21, 2016, by voice vote. The bill would require intermediate providers to register with the Federal Communications Commission and comply with the service quality standards set by the agency in order to improve call quality from long distance or wireless calls in rural areas throughout the country. Passed unanimously by voice vote.

FCC May Exit App Standards Oversight in Set-Top Proposal

Apparently, Federal Communications Commission Chairman Tom Wheeler's apps-based set-top box/navigation device proposal is getting a major tweak to get programmers on board. While the proposal was to have had the FCC backstop an app licensing body to make sure agreements were reasonable and not anti-competitive, industry sources said the FCC will no longer have that explicit oversight role and, instead, would review the app standards process after a couple of years and step in then, if necessary.

For the Hollywood studios, having the FCC potentially change the terms of contracts is a nonstarter, as it was for various Hill Democrats, especially on the Justice committees that deal with copyright. The item is still in flux, apparently, but it was moving toward that major adjustment. Chairman Wheeler signaled two weeks ago there would be further stakeholder talks and that he was willing to tweak his proposal to address concerns about the licensing body and copyrights.

FTC won’t give up fight against AT&T unlimited data throttling

The Federal Trade Commission will appeal a court decision that let AT&T avoid punishment for throttling the Internet connections of customers with unlimited data plans. The FTC sued AT&T in October 2014, seeking refunds for customers. But in August, a three-judge panel at the US Court of Appeals for the Ninth Circuit ruled in favor of AT&T, overturning a District Court decision that had gone in the FTC's favor. The FTC's options include seeking a rehearing of the case in front of the entire Ninth Circuit appeals court, and that is what the commission will do. "We are going to be seeking a rehearing in that matter," FTC Chairwoman Edith Ramirez told US senators during an FTC oversight hearing Sept 29. If the FTC fails at the appeals court level, it could take the matter to the US Supreme Court, but Chairwoman Ramirez did not address that possibility.

Focus on broadband access, not set-top boxes, analyst says

“The Internet has eaten the TV,” an analyst for The Diffusion Group pointed out in a post arguing that the Federal Communications Commission needs to stop futzing about with set-top box regulation and instead accept that TV’s future lies in apps, not hardware. With the FCC’s vote on new “unlock the box” set-top rules due Sept 29, TDG analyst Joel Espelien sided squarely with the commission on its “surprisingly radical and surprisingly obvious” new policy recommendation – one that is more in line with the pay-TV industry’s counter-proposal -- that multichannel video programming distributors (MVPDs, or pay-TV) provide an app-based alternative to set-tops after a two-year transition period. That alternative would run on a streaming device like Roku or Google Chromecast and obviate the need to lease a box. Espelien suggested that the industry needs to change its perspective on streaming video and its place in the greater broadband-based internet. Getting access to broadband is far more important than being able to tune into a TV program; that’s why the FCC has encouraged programs that help lower-income Americans get high-speed broadband connections. And that’s why TV has become an “option,” not a necessity, he said.

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