May 2017

Today's Quote 05.02.2017

“The FCC has basically said: ‘Game on. We’re going to let you consolidate further than anyone had imagined.’”
- Richard Greenfield, a media analyst at BTIG.

May 2, 2017 (Court Upholds Title II Net Neutrality Rules Again)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for TUESDAY, MAY 2, 2017

“The FCC has basically said: ‘Game on. We’re going to let you consolidate further than anyone had imagined.’”
- Richard Greenfield, a media analyst at BTIG.

NET NEUTRALITY
   Federal court lets net neutrality regulations stand
   Net neutrality may be poised for a Supreme Court showdown
   Chairman Pai Statement on DC Circuit Title II Rehearing Decision - press release
   Commissioner O'Rielly Statement on DC Circuit Decision - press release [links to Benton summary]
   Choosing which cable channels to provide is speech, but offering Internet access is not - WaPo op-ed/analysis [links to Benton summary]
   Net Neutrality Court Decision Hailed by Title II Fans [links to Benton summary]
   Net Neutrality Rules and Title II Legal Authority Win Again in Court [links to Free Press]
   Senate Republicans introduce anti-network neutrality legislation
   ISP Sonic CEO talks about broadband policy, net neutrality - press release [links to Benton summary]
   Verizon’s bizarre claim that the FCC isn’t killing net neutrality rules [links to Benton summary]
   FCC chairman misleads in effort to destroy net neutrality - San Jose Mercury News
   FTC Commissioner McSweeny: Unwinding net neutrality favors "gatekeepers" [links to Benton summary]
   Pai Hill Briefing on Open Internet NPRM Reschedule for May 3 [links to Multichannel News]
   Telecoms Gave These Organizations Millions, But You Wouldn't Know That From Reading Their Anti-Net Neutrality Op-Eds [links to Media Matters for America]
   Internet's biggest players duck net neutrality fight [links to Benton summary]
   FCC’s Ajit Pai isn't helping engineers or innovators by walking back net neutrality [links to Los Angeles Times]
   Editorial: Net neutrality protects the rights of all internet users [links to Newsday]
   Trump Transition Official Roslyn Layton Just Made a Great Accidental Argument for Net Neutrality [links to Vice]
   FCC Chairman Ajit Pai could finally get net neutrality right - The Hill op-ed [links to Benton summary]
   Chairman Pai’s plan to fix net neutrality is the right one - The Hill op-ed [links to Benton summary]
   Babette Boliek: Repealing Title II would unleash innovation on the internet [links to American Enterprise Institute]

INTERNET/BROADBAND
   An Open Application Process is the Way to Build Better Broadband - SHLB Coalition op-ed
   AT&T will drop Lifeline program in Kansas, Missouri [links to Benton summary]

COMMUNICATIONS & DEMOCRACY
   President Trump is viewed more unfavorably now than Joe McCarthy — after the Army hearings [links to Washington Post]
   President Trump launches $1.5M ‘First 100 Days’ TV ad [links to New York Post]
   Trump Interview Ends When Asked About False Claim that President Barack Obama had Placed a “Tap” on Trump Tower [links to New York Times]

JOURNALISM
   What it's like to report in one of the world's deadliest places for journalists [links to Los Angeles Times]
   Claims of Liberal Bias in Media Now Include Sportscasters, Too [links to New York Times]

WIRELESS/SPECTRUM
   Institute for Telecommunication Sciences Releases Key Software Model to Boost Collaborative Spectrum-Sharing Research - press release [links to Benton summary]
   The Internet of Things Needs a Code of Ethics [links to Benton summary]

SECURITY/PRIVACY
   Congress’s Attempt to Repeal the FCC Internet Privacy Rules: The Void Will Be Filled - Technology Academics Policy op-ed [links to Benton summary]
   David Lazarus: When companies get hacked, they take their privacy a lot more seriously than yours [links to Los Angeles Times]
   President Trump Discards Obama Legacy, One Rule at a Time [links to Benton summary]

ADVERTISING
   Facebook told advertisers it can identify teens feeling 'insecure' and 'worthless' [links to Guardian, The]

CONTENT
   Twitter Teams Up With Bloomberg for Streaming News [links to Wall Street Journal]

OWNERSHIP
   TV Station Owners Rush to Seize on Relaxed FCC Rules
   21st Century Fox and Blackstone Said to Be Interested in Buying Tribune Media [links to New York Times]

TELEVISION
   Five Rule Changes the FCC Should Consider - TVNewsCheck op-ed [links to Benton summary]

HEALTH
   How Telemedical Services Improve Healthcare Access in Rural Areas? [links to Medium]

LABOR
   Strike averted: Writers Guild of America reaches agreement with studios and touts gains in TV pay and health plan [links to Los Angeles Times]
   Interns at these 25 companies make more than the median U.S. worker [links to Washington Post]
   Diana Falzone of Fox News Files Discrimination Lawsuit [links to New York Times]

EMERGENCY COMMUNICATIONS
   FirstNet and AT&T: The First 30 Days - press release [links to Benton summary]

POLICYMAKERS
   President Trump creates tech advisory council
   Reps Paulsen, DelBene create Digital Trade Caucus [links to Benton summary]
   Chairman Pai Announces Office of Media Relations Staff Change - press release [links to Benton summary]
   Chairman Pai's Response to Members of Congress Regarding Letters of Support for Appointments to Broadband Deployment Advisory Committee [links to Federal Communications Commission]

COMPANY NEWS
   Fox News Executive, Bill Shine, Departs Amid Turmoil [links to New York Times]
   Apple’s Cash Hoard Set to Top $250 Billion [links to Wall Street Journal]
   Facebook taps former New York Times exec to lead news product team [links to Benton summary]

STORIES FROM ABROAD
   Turkish authorities block Wikipedia without giving reason [links to BBC]
   China is recruiting 20,000 people to write its own Wikipedia [links to Vice]
   U.K. Warns Facebook, Google, Twitter to Better Fight Hate Speech [links to Bloomberg]
   In Europe’s Election Season, Tech Vies to Fight Fake News [links to New York Times]

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NET NEUTRALITY

FEDERAL COURT LETS NN REGULATIONS STAND
[SOURCE: The Hill, AUTHOR: Harper Neidig]
A federal appeals court rejected a request to review its decision upholding the Federal Communications Commission's network neutrality regulations. The victory for net neutrality supporters comes just days after FCC Chairman Ajit Pai announced that he is starting proceedings to repeal the rules, and could set the stage for a Supreme Court showdown. In its denial for what's called an en banc review, the DC Circuit Court of Appeals cited FCC Chairman Ajit Pai's plans to repeal the net neutrality rules. "En banc review would be particularly unwarranted at this point in light of the uncertainty surrounding the fate of the FCC’s Order," the decision reads. "The agency will soon consider adopting a Notice of Proposed Rulemaking that would replace the existing rule with a markedly different one." "In that light, the en banc court could find itself examining, and pronouncing on, the validity of a rule that the agency had already slated for replacement."
benton.org/headlines/federal-court-lets-net-neutrality-regulations-stand | Hill, The | Vox | Multichannel News
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NN MAY BE POISED FOR A SUPREME COURT SHOWDOWN
[SOURCE: Washington Post, AUTHOR: Brian Fung]
A federal appeals court has said it will not rehear a landmark case looking to overturn the government’s rules on network neutrality. May 1's decision by the US Court of Appeals for the DC Circuit allows its previous ruling upholding the regulations to stand — and paves the way for opponents of the rules to appeal to the Supreme Court. “I'm super excited,” said Daniel Berninger, one of the critics who in 2015 sued the Federal Communications Commission, which wrote the rules. “When we get to the Supreme Court, we want to be saying [to a largely conservative bench] this is a severe case of government overreach.” If the Supreme Court agrees to take the case, it could hear oral arguments spring 2018, said Berninger, who intends to file his appeal within 90 days.
benton.org/headlines/net-neutrality-may-be-poised-supreme-court-showdown | Washington Post | Vox
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PAI STATEMENT ON DC CIRCUIT TITLE II REHEARING DECISION
[SOURCE: Federal Communications Commission, AUTHOR: FCC Chairman Ajit Pai]
Federal Communications Commission Chairman Ajit Pai issued the following statement on the decision by the US Court of Appeals for the District of
Columbia Circuit not to rehear the Title II case en banc: “In light of the fact that the Commission on May 18 will begin the process of repealing the FCC’s Title II regulations, it is not surprising, as Judges Srinivasan and Tatel pointed out, that the DC Circuit would decide not to grant the petitions for rehearing en banc. Their opinion is important going forward, however, because it makes clear that the FCC has the authority to classify broadband Internet access service as an information service, as I have proposed to do. I also agree with many of the points made by Judges Brown and Kavanaugh in their compelling opinions explaining why the Commission’s Title II Order was unlawful."
benton.org/headlines/chairman-pai-statement-dc-circuit-title-ii-rehearing-decision | Federal Communications Commission
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ANTI-NET NEUTRALITY BILL
[SOURCE: The Hill, AUTHOR: Ali Breland]
Sen Mike Lee (R-UT) introduced a bill to nullify the Federal Communications Commission’s network neutrality rules and prohibit the FCC from issuing a similar rule in the future. Sens. John Cornyn (R-TX), Tom Cotton (R-AR), Ted Cruz (R-TX), Ron Johnson (R-WI), Rand Paul (R-KY), Thom Tillis (R-NC), Ben Sasse (R-NE), and James Inhofe (R-OK) co-sponsored Lee’s bill. The bill is unlikely to receive support from Democrats in the Senate.
http://thehill.com/policy/technology/331483-republicans-introduce-anti-n...
Sen. Lee Introduces Restoring Internet Freedom Act (Sen Lee)
benton.org/headlines/senate-republicans-introduce-anti-network-neutrality-legislation | Hill, The | Sen Lee
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PAI MISLEADS IN EFFORT TO DESTROY NET NEUTRALITY
[SOURCE: San Jose Mercury News, AUTHOR: Troy Wolverton]
[Commentary] If Federal Communications Commission Chairman Ajit Pai’s network neutrality proposal was shocking, his justifications for it ranged from the misleading to the flat-out false. Chairman Pai argues, for example, that Tom Wheeler’s net neutrality rules represented a radical departure for the FCC, moving it from a “light-touch” regulatory regime that had allowed the internet to thrive over the last 20 years to an outdated and “heavy-handed” one that’s put the internet under government control. There’s so much wrong with this argument that’s hard to know where to start. But that was just one of Pai’s misleading justifications. Relying on industry-backed studies, he also argued that investment in broadband has declined over the last two years thanks to the net neutrality rules. But according to a study authored by Free Press, in the two-year period following the passage of the new rules, investment by the broadband providers that are public companies is actually up compared with the two-year period immediately before they were passed.
benton.org/headlines/fcc-chairman-misleads-effort-destroy-net-neutrality | San Jose Mercury News
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INTERNET/BROADBAND

OPEN APPLICATION PROCESS FOR BROADBAND
[SOURCE: Medium, AUTHOR: John Windhausen]
[Commentary] The SHLB Coalition has offered our own proposal to Congress that would focus on deploying high-capacity broadband to and through anchor institutions to the surrounding rural community. Our “Rural American Broadband Connectivity” (Rural ABC) plan is fiscally prudent, promotes “dig once” and streamlined infrastructure policies, and is intended to ensure that high-speed broadband is available for public use in every single American community. Most importantly, it calls for a variety of financial mechanisms (including tax credits, grants and loans) and an open application process. Internet2 has also released an significant paper that documents the important role of the research and education networks in connecting anchor institutions.
[John Windhausen is the executive director of the SHLB Coalition]
benton.org/headlines/open-application-process-way-build-better-broadband | Medium
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OWNERSHIP

TELEVISION STATION OWNERSHIP
[SOURCE: New York Times, AUTHOR: Michael de la Merced, Cecilia Kang]
“The [Federal Communications Commission] has basically said: ‘Game on. We’re going to let you consolidate further than anyone had imagined,’” said Richard Greenfield, a media analyst at BTIG. Consolidation of local broadcast stations could lead to more expensive fees for consumers as providers pass on ever-higher fees from broadcasters and content creators to subscribers. But to media companies, the mantra of late has been that bigger is better. For broadcast station companies in particular — including Sinclair, Fox and the Nexstar Media Group — owning more stations increases their power over cable companies, which pay to retransmit the stations. Fox’s motive for pursuing Tribune, which has more Fox affiliates than any other station owner, largely appears to be blocking a deal with Sinclair. It plans to form a joint venture with the Blackstone Group, an investment giant, in which Blackstone would provide the cash for a deal while Fox would provide its own television stations. If successful, Fox would then reduce its direct exposure to local television stations, while still holding on to a piece — and while stymieing a rival.
benton.org/headlines/tv-station-owners-rush-seize-relaxed-fcc-rules | New York Times
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POLICYMAKERS

PRESIDENT TRUMP CREATES TECH ADVISORY COUNCIL
[SOURCE: The Hill, AUTHOR: Harper Neidig]
President Donald Trump signed an executive order creating a new technology council to help advise the government on streamlining its IT operations. The American Technology Council will be run by Chris Liddell, an assistant to the president and former CFO of Microsoft. The council will meet with Silicon Valley leaders sometime in June to discuss ideas on modernizing government operations. The council is part of Trump senior adviser Jared Kushner’s White House Office of Innovation, which was established in March to try to streamline government operations.
benton.org/headlines/president-trump-creates-tech-advisory-council | Hill, The | Presidential Executive Order | Axios | Vox
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Senate Republicans introduce anti-network neutrality legislation

Sen Mike Lee (R-UT) introduced a bill to nullify the Federal Communications Commission’s network neutrality rules and prohibit the FCC from issuing a similar rule in the future. Sens. John Cornyn (R-TX), Tom Cotton (R-AR), Ted Cruz (R-TX), Ron Johnson (R-WI), Rand Paul (R-KY), Thom Tillis (R-NC), Ben Sasse (R-NE), and James Inhofe (R-OK) co-sponsored Lee’s bill. The bill is unlikely to receive support from Democrats in the Senate.

President Trump Discards Obama Legacy, One Rule at a Time

Just days after the November election, top aides to Donald Trump huddled with congressional staff members in House Speaker Paul Ryan’s suite of offices at the Capitol. The objective: not to get things done, but to undo them — quickly.

For about three months after Inauguration Day, President Trump would have the power to wipe away some of his predecessor’s most significant regulations with simple-majority votes from his allies in Congress. But the clock was ticking. An obscure law known as the Congressional Review Act gives lawmakers 60 legislative days to overturn major new regulations issued by federal agencies. After that window closes, sometime in early May, the process gets much more difficult: Executive orders by the president can take years to unwind regulations — well beyond the important 100-day yardstick for new administrations. So in weekly meetings leading up to Jan. 20, the Trump aides and lawmakers worked from a shared Excel spreadsheet to develop a list of possible targets: rules enacted late in Barack Obama’s presidency that they viewed as a vast regulatory overreach that was stifling economic growth. The result was a historic reversal of government rules in record time.

TV Station Owners Rush to Seize on Relaxed FCC Rules

“The [Federal Communications Commission] has basically said: ‘Game on. We’re going to let you consolidate further than anyone had imagined,’” said Richard Greenfield, a media analyst at BTIG.

Consolidation of local broadcast stations could lead to more expensive fees for consumers as providers pass on ever-higher fees from broadcasters and content creators to subscribers. But to media companies, the mantra of late has been that bigger is better. For broadcast station companies in particular — including Sinclair, Fox and the Nexstar Media Group — owning more stations increases their power over cable companies, which pay to retransmit the stations. Fox’s motive for pursuing Tribune, which has more Fox affiliates than any other station owner, largely appears to be blocking a deal with Sinclair. It plans to form a joint venture with the Blackstone Group, an investment giant, in which Blackstone would provide the cash for a deal while Fox would provide its own television stations. If successful, Fox would then reduce its direct exposure to local television stations, while still holding on to a piece — and while stymieing a rival.