Daily Digest 10/17/2019 (Chairman Elijah Cummings)

Benton Institute for Broadband & Society
Table of Contents

Wireless

The FCC has voted to approve the T-Mobile-Sprint merger  |  Read below  |  Makena Kelly  |  Vox
The T-Mobile and Sprint Merger Will Only Hurt Consumers  |  Read below  |  FCC Commissioner Jessica Rosenworcel  |  Op-Ed  |  Atlantic, The
Commissioner Jessica Rosenworcel Statement On T-Mobile/Sprint Merger  |  Read below  |  FCC Commissioner Jessica Rosenworcel  |  Press Release  |  Federal Communications Commission
Commissioner Starks on the Sprint/T-Mobile Transaction  |  Read below  |  FCC Commissioner Geoffrey Starks  |  Press Release  |  Federal Communications Commission
Reactions to Sprint/T-Mobile Vote at the FCC  |  Summary at Benton.org  |  Robbie McBeath  |  Benton Foundation
Sen Kennedy: Litigation Looms Over Pai's 5G Airwaves Choice  |  Read below  |  Alexandra Levine  |  Politico
Report Finds Sparse 5G Coverage with AT&T and Verizon Offering the Fastest Speeds, but Sprint Has Broader Reach  |  telecompetitor
C Spire upgrades wireless connectivity at Birmingham City Schools  |  Fierce

Health

Engagement on Equity: Connectivity and the Future of Healthcare  |  Read below  |  Mignon Clyburn  |  Speech  |  Benton Institute for Broadband & Society

Platforms

Years after Obama used Facebook to help him win the presidency, Silicon Valley is under Democratic fire  |  Washington Post
EFF op-ed: Changing Section 230 Would Strengthen the Biggest Tech Companies  |  New York Times
Facebook co-founder Chris Hughes launches a $10 million “anti-monopoly fund”  |  Washington Post
The Young Firms Rethinking Social Media  |  Information, The

Privacy

Internet Association op-ed: Americans Will Pay a Price for State Privacy Laws  |  New York Times
Google chief: I'd disclose smart speakers before guests enter my home  |  BBC

Labor

Commissioner Carr Applauds Tower Climber Program for 5G Workforce  |  Federal Communications Commission

Trade

Lawmakers Blast Administration for Tech Shield in Trade Deals  |  New York Times

Company News

Facebook Wanted to Create a New Currency. It Wasn’t Ready for the Backlash.  |  Wall Street Journal
Huawei posts double-digit gain in sales despite US sanctions  |  Hill, The

Policymakers

Rep. Elijah Cummings, longtime Baltimore advocate was key figure in Trump impeachment inquiry  |  Read below  |  Jeff Barker  |  Baltimore Sun
‘A giant of integrity and knowledge has fallen’: Congress reacts to the death of Rep. Elijah Cummings  |  Washington Post

Stories From Abroad

How One Tweet Turned Pro-China Trolls Against the NBA  |  Wall Street Journal
Editorial: Facebook shouldn’t run Trump’s lie-laden ads  |  Washington Post
Today's Top Stories

Wireless

The FCC has voted to approve the T-Mobile-Sprint merger

Makena Kelly  |  Vox

The Federal Communications Commission formally approved the merger between T-Mobile and Sprint. The vote comes months after the Justice Department greenlit the deal. Now, the T-Mobile-Sprint deal faces one more battle. A bipartisan coalition of state attorneys general are still trying to block the deal through a multistate lawsuit, and representatives from the two companies said that they won’t close the merger until that is resolved.

The T-Mobile and Sprint Merger Will Only Hurt Consumers

FCC Commissioner Jessica Rosenworcel  |  Op-Ed  |  Atlantic, The

On Oct 16, as a commissioner at the Federal Communications Commission, I voted to block the merger of T-Mobile and Sprint, the country’s third- and fourth-largest wireless carriers. But I am only one of five votes at the agency, and a majority of my colleagues have already voiced their support for this transaction. On top of that, the Department of Justice recently reached an agreement with the carriers, giving them a green light to combine. The largest wireless merger in history is now headed toward approval. If you own a mobile phone—as 96 percent of American adults do—that’s bad news.

Shrinking the number of national providers from four to three will hurt consumers, harm competition, and eliminate thousands of jobs. In deciding to overlook these harms, the FCC and the Department of Justice have been wooed by a few unenforceable concessions and hollow promises from the two companies involved. Our existing wireless market will devolve into a cozy oligopoly dominated by just three carriers.

Three commissioners at the FCC publicly conveyed their full support for this transaction before they even had any in-house legal, economic, or engineering analysis to review. Then, once we had a document produced by the commission’s expert staff, key parts were rewritten by political leadership without any opportunity for public comment. This is not how good government should operate.  If this merger succeeds, consumers will pay the price.

Commissioner Jessica Rosenworcel Statement On T-Mobile/Sprint Merger

FCC Commissioner Jessica Rosenworcel  |  Press Release  |  Federal Communications Commission

We’ve all seen what happens when markets become more concentrated after a merger like this one. In the airline industry, it brought us baggage fees and smaller seats. In the pharmaceutical industry, it led to a handful of drug companies raising the prices of lifesaving medications. There’s no reason to think this time will be different. Overwhelming evidence demonstrates that the T-Mobile-Sprint merger will reduce competition, raise prices, lower quality, and slow innovation. Moreover, the remedies that are supposed to save consumers from the problems with this merger do little more than camouflage its harm. With 5G on the horizon, our dependence on wireless connectivity is bound to grow. It’s not the time to count on ineffective deployment commitments, higher prices, and less vigorous competition to help the benefit of this new technology reach us all. Finally, the process that got us here is equally troubling. Three of my colleagues agreed to this transaction months ago without having any legal, engineering, or economic analysis from the agency before us. Consumers deserve better from the Washington authorities charged with reviewing this transaction.

Commissioner Starks on the Sprint/T-Mobile Transaction

FCC Commissioner Geoffrey Starks  |  Press Release  |  Federal Communications Commission

The expert staff of the Commission and the Justice Department have agreed that the merger between TMobile and Sprint, as originally submitted, would likely harm competition and raise prices. Rather than denying that merger, however, the majority has turned to the parties for paper-thin commitments that they contend will expand broadband access and the deployment of 5G. But these promises cannot mask reality. You don’t need to be an expert to know that going from four wireless carriers to three will hurt competition. This merger takes a bad situation and makes it worse. Higher prices and fewer options across the country will inevitably result. Quite simply, the effects of this ill-conceived merger will hit low-income and rural communities hardest of all. This proceeding also has had unprecedented procedural irregularities. The deal approved today has changed significantly from the one that was originally proposed – twice. I have been clear: where there is a fundamental change in the structure of a proposed merger, it must be set out for public comment. This administration previously adhered to that practice, and our failure to do so here raises legal issues. Moreover, today’s approval comes despite our on-going investigation of Sprint for what appears to be the largest unlawful collection of universal service funds in FCC history. But instead of waiting until we have all the facts, we haphazardly push forward and hope for the best. The rush to judgment here is exemplified by the fact that it was only in response to questions from my office that the draft was amended at the last minute to explicitly preserve liability for these and any other potential violations. The Order concludes that the transaction will likely harm competition and raise prices, but that the parties’ commitments to expand service and divest assets will mitigate these harms. But the analysis of how the benefits outweigh the harms is vague and unconvincing. The obligations imposed on the parties are so loosely drafted that meaningful enforcement will be impossible. The financial penalties for noncompliance will not effectively deter a company with billions of dollars in annual revenue. And the Order characterizes any penalties as tax-deductible “voluntary contributions,” meaning the American taxpayer will be left holding the bag for at least some of any penalties imposed on New T-Mobile.

In short, I believe that T-Mobile and Sprint have not proven that their merger will benefit the public interest. Vague promises do not change what was true when this deal was first proposed and what remains true today – the harms from this merger are not overcome by any condition imposed in the majority’s order. While I hope for the sake of consumers that I am wrong, I fear that we will one day look back at this decision and recognize it as a moment that forever changed the U.S. wireless industry, and not for the better.

Sen Kennedy: Litigation Looms Over Pai's 5G Airwaves Choice

Alexandra Levine  |  Politico

Sen John Neely Kennedy (R-LA), the top Senate appropriator overseeing Federal Communications Commission funding, will bring in FCC Chairman Ajit Pai for a hearing Oct 17 to grill him about whether the agency will run its own, likely slower, auction of the 5G airwaves known as the C-band or, as Sen Kennedy fears, allow the satellite companies holding the spectrum to conduct a private sale. “They say we’ve got to do a private deal because it’ll be faster,” said Sen Kennedy. “You ever heard of courts? Duh, you don’t think anybody’s going to file suit over this? Any Tom, Dick, Harry, John or Julie can figure that one out.”

Sen Kennedy plans to challenge the FCC on its speed: “Maybe we need to fire somebody over there and find somebody who can do an auction sooner than six or seven years,” he said. “I just think this thing stinks.” Although Senate Commerce Committee leaders have challenged Kennedy’s authority on this issue, he said that as head of the FCC budget, it’s within his purview and welcomed Senate Commerce leaders to attend his hearing (he also included nonbinding appropriations report language pushing the FCC to hold a public auction, which Senate appropriators approved in Sept 2019). If the FCC decides to go forward with a private deal, Sen Kennedy predicted not only litigation but also public anger: “I think the American people are going to lose a lot of money! I think they’re going to get screwed, blued and tattooed.”

Health

Engagement on Equity: Connectivity and the Future of Healthcare

Mignon Clyburn  |  Speech  |  Benton Institute for Broadband & Society

Bridging the digital divide can help address our nation’s persistent health disparities. Rural Americans not only face limited access to health-care facilities, but “suffer from higher rates of obesity, mental health issues, diabetes, cancer, and opioid addiction.” But the tie that also binds is the lack of high-speed broadband connectivity in low-income communities, too. Rural America, as you know, is facing a physician shortage and low-income and rural populations are less likely to have choice when it comes to broadband providers. Allow me to be more direct: in those places where there is a wealth and/or population gap, there is a health care and broadband availability gap. While the challenge is clear, the cure is even clearer. With broadband connectivity, patients with virtually any condition can be seen remotely by a specialist without having to drive anywhere at all. So should come as no surprise that 52 percent of hospitals now use at least some form of telehealth, another 10 percent are just ramping up and we expect more to come on board. What does this make clear?  That a healthy America is a connected America. Conversely, if we fail to fully address America’s broadband connectivity gap – when it comes, to health and wellness in rural America -- none of us, will be completely well. Real, High-Performance Broadband can help solve some of health care’s most enduring problems and intractable challenges... and it can do so by delivering massive cost-saving opportunities. It can slow runaway health-care cost growth, enable patients to harness a new generation of connected-care devices that help them live longer and more productive lives and extend connected care everywhere while closing the rural health-care gap.

[Mignon Clyburn served as a Commissioner on the Federal Communications Commission from 2009 to 2018, including a term as Acting Chairwoman in 2013. She currently serves on the Benton Board of Directors]

Policymakers

Rep. Elijah Cummings, longtime Baltimore advocate was key figure in Trump impeachment inquiry

Jeff Barker  |  Baltimore Sun

Rep. Elijah Cummings (D-MD) of Baltimore, a committee chairman known for his devotion to Baltimore and civil rights and for blunt and passionate speechmaking, died of longstanding health problems on Oct 17, his office said. He was 68 years old. Rep Cummings was a key figure in the impeachment inquiry into President Donald Trump as chairman of the House Oversight and Reform Committee. He had been absent from Capitol Hill in recent weeks while under medical attention.

Cummings was born in 1951 and raised in Baltimore, where he continued to live. He was one of seven children of Robert Cummings Sr. and Ruth Elma Cummings, née Cochran, who were sharecroppers on land where their ancestors were enslaved. The couple moved to Baltimore in the late 1940s. As a child, Cummings struggled in elementary school and was assigned to special education courses. However, after showing promise in high school at City College, he won Phi Beta Kappa honors at Howard University in Washington. He earned a bachelor’s degree in political science. He graduated from the University of Maryland School of Law and passed the state bar in 1976. In 1982, with the support of several established city officials, Cummings ran for state delegate and won. He served in the Maryland General Assembly for 14 years and became the first African American in Maryland history to be named speaker pro tem. In late 1995, Cummings decided to run for Maryland’s 7th congressional district in the US House after Rep. Kweisi Mfume (D-MD) announced he would resign to become the head of the NAACP. Cummings served as a congressman since 1996.

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Benton (www.benton.org) provides the only free, reliable, and non-partisan daily digest that curates and distributes news related to universal broadband, while connecting communications, democracy, and public interest issues. Posted Monday through Friday, this service provides updates on important industry developments, policy issues, and other related news events. While the summaries are factually accurate, their sometimes informal tone may not always represent the tone of the original articles. Headlines are compiled by Kevin Taglang (headlines AT benton DOT org) and Robbie McBeath (rmcbeath AT benton DOT org) — we welcome your comments.


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