June 2017

June 28, 2017 (CNN Retraction)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for WEDNESDAY, JUNE 28, 2017

Today's Events –


COMMUNICATIONS & DEMOCRACY
   Speaker Ryan: Ignore The Cable News Bickering. This Congress Is Getting Things Done - House Speaker Paul Ryan (R-WI) op-ed
   Op-ed: Controversial Supreme Court decisions change public opinion — in part because the media mostly report on them uncritically [links to Washington Post]
   A Costly Retraction for CNN and an Opening for President Trump
   President Trump blasts media after CNN retraction: 'They are all Fake News!' [links to Benton summary]
   White House Spokeswoman Sarah Huckabee Sanders unloads on media over CNN retraction [links to Washington Post]
   Sarah Huckabee Sanders went on an anti-media tirade, until a newspaper reporter couldn’t take it anymore [links to Washington Post]
   Trump’s asymmetric warfare against the media continues to pay off - WaPo [links to Benton summary]
   Trump team battling Disney over speech in ‘Hall of Presidents’ attraction [links to Hill, The]
   President Trump promotes Fox News host’s book on Twitter [links to Hill, The]

INTERNET/BROADBAND
   5 New Cities Become Smart Gigabit Communities
   Deloitte Calls for $150 Billion Fiber Infrastructure Investment for U.S. to Reach Full Digital Potential
   California’s digital divide closing but new ‘under-connected’ class emerges
   Why you should care about net neutrality - Wired op-ed

OWNERSHIP
   Sen Collins (R-ME) calls for tight scrutiny on AT&T's proposed Time Warner merger [links to Benton summary]
   Amazon primed for merger battle [links to Benton summary]

CYBERSECURITY
   Massive cyberattack hits Europe with widespread ransom demands
   Why this ransomware attack is more alarming than the last [links to American Public Media]
   Pharmaceutical giant Merck rocked by ransomware attack [links to Washington Post]
   Companies struggle to recover after massive cyberattack with ransom demands [links to Washington Post]

SECURITY/PRIVACY
   The DOJ Wants To Take Away Online Privacy. And A Court Says Okay [links to Benton summary]
   Officials: Controversial Surveillance Law Helped Stop Smartphone Attack [links to nextgov]
   Spy agencies seek permanent authority for contested surveillance program [links to Washington Post]

EMERGENCY COMMUNICATIONS
   FirstNet Comes Home: The Major City (Police) Chiefs Association Annual Meeting [links to FirstNet]

CONTENT
   Facebook’s Secret Censorship Rules Protect White Men from Hate Speech But Not Black Children [links to Pro Publica]
   Detecting riots with Twitter [links to Cardiff University]
   Three fears that hamper tech progress [links to American Enterprise Institute]
   Report: The app economy will be worth $6 trillion in five years thanks to mobile commerce [links to Vox]
   Bill Plaschke: Dodgers' TV blackout denies fans key outlet for channeling their devotion [links to Los Angeles Times]

TELECOM
   Verizon says de facto copper retirement concept inhibits fiber migration, creates uncertainty [links to Benton summary]

WIRELESS/SPECTRUM
   What’s at Stake in the Discussions Between Comcast, Charter and Sprint - Cecilia Kang analysis [links to Benton summary]
   Sprint’s talks with Comcast and Charter could ramp up competition in the already ailing wireless industry - Miriam Gottfried analysis [links to Benton summary]
   Judge Denies Qualcomm Motion to Dismiss FTC’s Competition Lawsuit [links to Wall Street Journal]
   Los Angeles County Begins Outfitting Buses with Free Wi-Fi [links to Government Technology]

CHILDREN & MEDIA
   Facebook backs California law to give internet to incarcerated youth [links to CNN]

POLICYMAKERS
   McConnell’s Reputation as a Master Tactician Takes a Hit [links to New York Times]
   President Trump Taps Verizon’s Peter Davidson Department of Commerce General Counsel - press release [links to Benton summary]
   PTC Praises Rosenworcel Nomination [links to Broadcasting&Cable]
   Sarah Palin Sues New York Times, Claiming Editorial Defamed Her [links to New York Times]

COMPANY NEWS
   Facebook has 2 billion users. Can it reach 3 billion? [links to USAToday]
   Turmoil Continues at Pandora Media as Its Chief Executive Resigns [links to New York Times]

GOOGLE/EU
   Here’s what you need to know about the Google EU fine [links to Washington Post]
   A look back at the EU's 7 years of legal battle with Google [links to USAToday]
   Nils Pratley: EU's €2.4bn Google fine is no sign of anti-US bias [links to Financial Times]
   Google’s EU Fine Is a Small Price to Pay for Scale [links to Wall Street Journal]
   DC Stakes Out Positions on Google Fine [links to Broadcasting&Cable]
   Sen Blumenthal: FTC Should Investigate Google [links to Multichannel News]
   Public Knowledge Responds to European Commission Google Search Fine [links to Public Knowledge]
   How the $2.7 billion EU antitrust fine could change Google search [links to Vox]

STORIES FROM ABROAD
   Free gigabit Wi-Fi hot spots launch in London [links to Verge, The]
   Hollywood to Audit China Box Office for First Time [links to Wrap, The]
   Ireland OKs 21st Century Fox's Plan to Acquire Sky Shares [links to Broadcasting&Cable]
   Inquiry: FIFA Gave World Cup Rights to Fox in Order to Dodge Lawsuit [links to AdAge]

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COMMUNICATIONS & DEMOCRACY

SPEAKER RYAN OP-ED
[SOURCE: Independent Journal Review, AUTHOR: House Speaker Paul Ryan (R-WI)]
[Commentary] Sometimes the noise drowns out the good news. And it certainly is right now. It would be hard to fault the average American for thinking all that’s going on in Washington these days is high-drama hearings and partisan sniping. But amid the countdown clocks and cable news chatter, something important is happening: Congress is getting things done to help improve people’s lives. Here in the House of Representatives, we can do more than one thing at a time. And the truth is, even while carrying out our oversight responsibilities, we’ve been delivering on our promises to the American people. We are passing important legislation. We are doing our job. You just may not have heard about it.
benton.org/headlines/speaker-ryan-ignore-cable-news-bickering-congress-getting-things-done | Independent Journal Review
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COSTLY RETRACTION
[SOURCE: New York Times, AUTHOR: Michael Grynbaum]
In CNN’s newsroom, it is called the Triad: a three-pronged internal system designed to ensure that sensitive reporting by the network’s journalists is unimpeachable before it runs. Recently, the Triad fell short — and by June 27, the consequences were being felt across the news industry and in the hallways of the White House. CNN was forced to apologize after retracting a story on its website that a Russian bank linked to a close ally of President Donald Trump was under Senate investigation. Three high-ranking journalists at the network resigned. But the mea culpa did not stop President Trump and his supporters from seizing on the mistake, condemning CNN and claiming it as evidence that other major news organizations were conspiring against the administration. On Twitter, President Trump wrote that “they caught Fake News CNN cold” and asked, “What about all the other phony stories they do?” News organizations regularly issue corrections and, in rarer instances, retract a story. Other journalists praised CNN for taking responsibility after a painful black eye. But the ferocious response on Tuesday was a reminder of CNN’s unique role as a nemesis for President Trump, who says the network has unfairly tried to tie him to Russian interference in last year’s election — and underlined the heightened tensions between the news media and an administration that has curtailed access and labeled the news media an “opposition party.”
benton.org/headlines/costly-retraction-cnn-and-opening-president-trump | New York Times | LA Times
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INTERNET/BROADBAND

5 NEW CITIES BECOME SMART GIGABIT COMMUNITIES
[SOURCE: Government Technology, AUTHOR: Dustin Haisler]
At the Smart Cities Connect Conference held June 25-28 at the Austin Convention Center, US Ignite and the National Science Foundation announced five new cities that have joined the Smart Gigabit Communities (SGC) program, which "accelerates the development of advanced gigabit applications that cannot run on current networks as the bedrock of smart communities by identifying new economic and social opportunities created by those applications," according to the SGC website. Each "gigabit" city receives support from the National Science Foundation to use its physical and wireless network infrastructure as an enabler of smart applications to solve specific community problems. Cities joining the program this year include: Washington (DC), Albuquerque (NM), Phoenix (AZ), San Diego (CA) and Jackson Energy Authority (TN).
benton.org/headlines/5-new-cities-become-smart-gigabit-communities | Government Technology
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DELOITTE CALLS FOR FIBER INFRASTRUCTURE INVESTMENT
[SOURCE: telecompetitor, AUTHOR: Joan Engebretson]
A $130 billion to $150 billion fiber infrastructure investment is required in the US to unleash innovation, close the digital divide, and fully prepare the country for 5G, according to a report from management consulting firm Deloitte. The report says the investment is needed over the next five to seven years to enable ‘deep fiber,’ or fiber infrastructure closer to the end user. Much of the premise behind the report focuses on 5G, which requires a dense fiber network for backhaul and fronthaul. But it also stresses the discrepancy between rural and urban broadband options. Deloitte is calling on regulators and the broadband carrier community to address this issue, or risk losing leadership for the global digital economy opportunity. The report says the US currently lacks the fiber infrastructure necessary to take advantage of 5G. Many tier one carriers, including Verizon, have expressed their plans to ramp up fiber investments. Deloitte seems to suggest it’s not enough.
benton.org/headlines/deloitte-calls-150-billion-fiber-infrastructure-investment-us-reach-full-digital-potential | telecompetitor
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CA DIGITAL DIVIDE
[SOURCE: San Jose Mercury News, AUTHOR: Seung Lee]
California faces a growing class of “under-connected” households that rely only on smartphones for online access, a trend that may worsen the state’s economic inequality, according to a report released by UC Berkeley Institute of Governmental Studies. In 2017, more Californians — 87 percent of the state’s households — had broadband Internet connectivity at home. But of those, 18 percent had smartphones as their only computing devices, more than double the 8 percent just two years earlier. While smartphones provide a cheaper, more portable way to get online, their limited computing power hinders the development of basic computing skills, leaving smartphone-only households much less likely to be integrated into California’s booming tech economy, experts said. Thirty-four percent of those without broadband at home cited the expense. They also acknowledged they felt disadvantaged in developing new career skills or taking classes, according to the poll, which surveyed more than 1,600 adults in six different languages.
benton.org/headlines/californias-digital-divide-closing-new-under-connected-class-emerges | San Jose Mercury News
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WHY YOU SHOULD CARE ABOUT NN
[SOURCE: Wired, AUTHOR: Brett Frischmann, Evan Selinger]
[Commentary] For some time now, the related issues of control and intelligent infrastructure have fuelled the network neutrality debate. Proponents of network neutrality are concerned that if internet service providers get to charge Netflix, YouTube or any website for the privilege of being downloaded at a faster speed than others - allowing some companies to avoid becoming slowed down - society would allow deep pockets to hijack our attention. It's tempting to back Federal Communications Commission Chairman Ajit Pai if it means we'll be able to stream movies faster and buffer-free. But while smart systems seem attractive, they'll inevitably be optimised for corporate profit and control. The principle of first-come, first-served is our best protection against interference. We need it on the web - and on the roads.
[Brett Frischmann is a professor at Cardozo Law School in New York City. Evan Selinger, Professor in the Department of Philosophy at the Rochester Institute of Technology]
benton.org/headlines/why-you-should-care-about-net-neutrality | Wired
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STORIES FROM ABROAD

CYBERATTACK HITS EUROPE
[SOURCE: Washington Post, AUTHOR: Andrew Roth]
A new wave of powerful cyberattacks hit Europe on June 27 in a possible reprise of a widespread ransomware assault in May that affected 150 countries. Ukraine reported ransom demands targeting the government and key infrastructure, and the Danish Maersk conglomerate said many of its systems were down. The Russian oil giant Rosneft was also hit, as was the British advertising and marketing multinational WPP. Norway’s National Security Authority said an “international company” there was affected. Ukraine first reported the cyberattacks, saying they targeted government ministries, banks, utilities and other important infrastructure and companies nationwide, airport departure tables and demanding ransoms from government employees in the cryptocurrency bitcoin. By midafternoon, breaches had been reported at computers governing the municipal energy company and airport in Ukraine’s capital, Kiev, the state telecommunications company Ukrtelecom, the Ukrainian postal service and the State Savings Bank of Ukraine. Payment systems at grocery stores were knocked offline, as well as the turnstile system in the Kyiv metro.
benton.org/headlines/massive-cyberattack-hits-europe-widespread-ransom-demands | Washington Post
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A Costly Retraction for CNN and an Opening for President Trump

In CNN’s newsroom, it is called the Triad: a three-pronged internal system designed to ensure that sensitive reporting by the network’s journalists is unimpeachable before it runs. Recently, the Triad fell short — and by June 27, the consequences were being felt across the news industry and in the hallways of the White House. CNN was forced to apologize after retracting a story on its website that a Russian bank linked to a close ally of President Donald Trump was under Senate investigation. Three high-ranking journalists at the network resigned.

But the mea culpa did not stop President Trump and his supporters from seizing on the mistake, condemning CNN and claiming it as evidence that other major news organizations were conspiring against the administration. On Twitter, President Trump wrote that “they caught Fake News CNN cold” and asked, “What about all the other phony stories they do?” News organizations regularly issue corrections and, in rarer instances, retract a story. Other journalists praised CNN for taking responsibility after a painful black eye. But the ferocious response on Tuesday was a reminder of CNN’s unique role as a nemesis for President Trump, who says the network has unfairly tried to tie him to Russian interference in last year’s election — and underlined the heightened tensions between the news media and an administration that has curtailed access and labeled the news media an “opposition party.”

What’s at Stake in the Discussions Between Comcast, Charter and Sprint

[Commentary] Comcast and Charter are negotiating with Sprint to offer wireless services to their cable and high-speed internet customers. The real disruption may be how Sprint’s negotiations with the cable companies put a potential merger with T-Mobile USA in limbo. The parent companies of Sprint and T-Mobile, SoftBank of Japan and Deutsche Telekom of Germany, have been in negotiations to merge their American wireless companies. If Comcast and Charter are bidding for a stake in Sprint, then those Sprint and T-Mobile negotiations will be affected.

Sprint’s talks with Comcast and Charter could ramp up competition in the already ailing wireless industry

[Commentary] Sprint needs a deal. With a market value roughly equal to its $33 billion in net debt, a tie up may be the only way for Sprint to get the resources to invest enough in its network to remain competitive. A deal with cable would be bad for Sprint’s wireless competitors because it would reduce the likelihood of industry consolidation through the hoped-for merger of Sprint and T-Mobile . It also would lower the cost of offering wireless service for the two cable companies, further exacerbating wireless competition. The optimistic view is that Sprint is talking to the cable guys to get T-Mobile and its majority owner Deutsche Telekom to agree to a deal on more favorable terms.