Daily Digest 10/4/2018 (Broadband lobby sues California)

Benton Foundation
Table of Contents

Broadband

Broadband lobby sues California to stop net neutrality law  |  Read below  |  Jon Brodkin  |  Ars Technica
The Republican Attack on California  |  Read below  |  Tim Wu  |  Op-Ed  |  New York Times
Minnesota Governor's Task Force on Broadband Releases Final Annual Report  |  Minnesota Broadband Task Force

Wireless

Cities will sue FCC to stop 5G Deployment order  |  Read below  |  Jon Brodkin  |  Ars Technica
Chairman Pai on 5G at Americas Spectrum Management Conference  |  Read below  |  FCC Chairman Ajit Pai  |  Speech  |  Federal Communications Commission
Remarks of FCC Chief of Staff Matthew Berry at Americas Spectrum Management Conference  |  Read below  |  Matthew Berry  |  Speech  |  Federal Communications Commission
The Good, the Bad, and the 5G  |  Read below  |  Michael Calabrese, Amir Nasr  |  Analysis  |  New America
FCC’s 3.5 GHz Citizens Broadband Radio Services (CBRS) proposal sparks cheers, fears  |  Fierce
Telecommunications Industry Association assails President Trump’s China tariffs as a threat to 5G  |  Fierce
AT&T is Leading the U.S. and the World on Mobile 5G  |  Read below  |  Chris Boyer  |  Press Release  |  AT&T
Sprint begins soft launch of Voice over LTE, years after major competitors  |  Vox
Sprint/T-Mobile merger could face challenges in California, as Public Utilities Commission Schedules Evidentiary Hearing  |  Fierce
Wi-Fi now has version numbers, and Wi-Fi 6 comes out in 2019  |  Read below  |  Jacob Kastrenakes  |  Vox

Ownership/Competition

Statement of Assistant Attorney General Makan Delrahim Before the Senate Subcommittee on Antitrust, Competition Policy and Consumer Rights  |  Read below  |  Assistant Attorney General Makan Delrahim  |  Department of Justice
FTC Testifies before Subcommittee of Senate Committee on the Judiciary Regarding Oversight of Antitrust Enforcement  |  Read below  |  FTC Chairman Joseph Simons  |  Federal Trade Commission
American Cable Association Letter on Antitrust to Senate Antitrust Subcommittee Leaders  |  Read below  |  Matthew Polka  |  Press Release  |  American Cable Association
FTC Announces Agenda for the Oct 15-17 Hearings on Competition and Consumer Protection  |  Read below  |  Press Release  |  Federal Trade Commission

Privacy/Security

Groups File Complaint With FTC Over Kids Messenger App  |  Read below  |  John Eggerton  |  Broadcasting&Cable
  • Senators Markey and Blumenthal Call for FTC Investigation of Children’s Apps  |  New York Times
Facebook Briefs Lawmakers on Breach in Effort to Guard Against Backlash  |  Read below  |  Deepa Seetharaman, Dustin Volz  |  Wall Street Journal
  • Facebook: "No evidence" third-party apps were accessed after breach "so far"  |  Hill, The
Privacy Advocates Call on Senate to Invite Consumer Privacy Experts to Testify for Oct Hearing  |  Center for Digital Democracy
ACLU's Neema Singh Guliani: The tech industry is suddenly pushing for federal privacy legislation. Watch out.  |  Washington Post
Apple CEO Tim Cook says giving up your data for better services is ‘a bunch of bunk’  |  Washington Post

Advertising

Mainstream advertising is still showing up on polarizing and misleading sites — despite efforts to stop it  |  Read below  |  Craig Timberg, Elizabeth Dwoskin, Andrew Ba Tran  |  Washington Post
Facebook blocked many gay-themed ads as part of its new advertising policy, angering LGBT groups  |  Washington Post

Elections

Disinformation, 'Fake News’ and Influence Campaigns on Twitter‘  |  Read below  |  Matthew Hindman, Vlad Barash  |  Research  |  Knight Foundation
Kavanaugh Nomination Battle Is Fought With Millions In Secret Cash  |  National Public Radio
In Tennessee Senate Race Between Bredesen and Blackburn, Financial Missteps Linger in the Background  |  New York Times

Emergency Communications

‘Presidential Alert’ Goes to Millions of Cellphones Across the US  |  New York Times

Policymakers

What You Stand For  |  Read below  |  Adrianne Furniss  |  Editorial  |  Benton Foundation

Stories From Abroad

Facebook faces $1.6 billion fine and formal investigation from Irish Data Protection Commission over massive data breach  |  Read below  |  Olivia Solon  |  Guardian, The
Google’s plans for first wired urban community raise data-privacy concerns  |  Read below  |  Rob Gillies  |  Associated Press
How The Chinese Government Works To Censor Debate In Western Democracies  |  National Public Radio
The Big Hack: How China Used a Tiny Chip to Infiltrate US Companies  |  Bloomberg
Netherlands 'halted Russian cyber-attack on chemical weapons body'  |  Guardian, The
Australian PM accuses Russian military of hacking US Democrats' emails  |  Guardian, The
UK's Foreign Office accuses Kremlin of ordering series of 'reckless' cyber-attacks  |  Guardian, The

Company News

Interbrand names Apple, Google and Amazon the most valuable brands in world  |  Guardian, The
Verizon’s Severance Offer Goes to About 44,000 Employees  |  Wall Street Journal
Pat Robertson’s Christian Broadcasting Network Launches 24-Hour News Net  |  Broadcasting&Cable
Today's Top Stories

Broadband

Broadband lobby sues California to stop net neutrality law

Jon Brodkin  |  Ars Technica

Four lobby groups representing the broadband industry sued California to stop the state's new network neutrality law. The lawsuit was filed in US District Court for the Eastern District of California by mobile industry lobby CTIA, cable industry lobby NCTA, telco lobby USTelecom, and the American Cable Association, which represents small and mid-size cable companies. Together, these four lobby groups represent all the biggest mobile and home Internet providers in the US and hundreds of smaller internet service providers (ISPs). "This case presents a classic example of unconstitutional state regulation," the complaint reads. The California net neutrality law "was purposefully intended to countermand and undermine federal law by imposing on [broadband] the very same regulations that the Federal Communications Commission expressly repealed in its 2018 Restoring Internet Freedom Order." ISPs say the California law impermissibly regulates interstate commerce. "[I]t is impossible or impracticable for an Internet service provider (“ISP”) offering [broadband Internet access service] to distinguish traffic that moves only within California from traffic that crosses state borders," the lobby groups' complaint says. The groups asked the court to declare that the state law "is preempted and unconstitutional, and should permanently enjoin [California] from enforcing or giving effect to it."

The Republican Attack on California

Tim Wu  |  Op-Ed  |  New York Times

Recently, California passed its own network neutrality laws, to ban blocking and throttling of the internet, as a stand-in for the federal net neutrality rules abandoned by the Trump administration in June. California has obvious reasons to want to protect an open internet: It is the land of the internet’s origin, and a place where tech entrepreneurship has thrived. If the Republican Party actually believed in economic decentralization, it might well accept the premise of state rules where the federal government explicitly disclaims any authority to act. But Attorney General Jeff Sessions, a self-declared states’ rights champion, declared within hours of the law’s passage that the Department of Justice will sue California for infringing corporate prerogatives — that is, interfering with the right of cable and phone companies to block or slow internet content. This attack on state net neutrality is no outlier but one of a series of similar invasions of states’ rights undertaken in the name of corporate sovereignty, which, in the age of a new nationalism, has been elevated above state law.

[Tim Wu is a law professor at Columbia]

Wireless

Cities will sue FCC to stop 5G Deployment order

Jon Brodkin  |  Ars Technica

A number of cities plan to sue the Federal Communications Commission over its decision to preempt local rules on deployment of 5G wireless equipment. Seattle Mayor Jenny Durkan and City Attorney Pete Holmes said their city intends to appeal the FCC order in federal court. Seattle will be coordinating with other cities on a lawsuit, they said. The FCC says its order will save carriers $2 billion, less than one percent of the estimated $275 billion it will take to deploy 5G across the country. In Oregon, the Portland City Council voted to approve a lawsuit against the FCC, saying the move "added Portland to a growing list of cities, primarily on the West Coast, that are preparing to fight" the FCC order.  "The scope of this overreach is significant," Durkan and Holmes said. "It impedes local authority to serve as trustees of public property and to fulfill cities' public health and safety responsibilities while establishing unworkable standards. This will increase costs and impose an unreasonable burden on local governments." The Seattle officials said they "are particularly concerned about how the Order will compromise the safety, security, and reliability of critical electrical infrastructure, City Light's utility poles."

Chairman Pai on 5G at Americas Spectrum Management Conference

FCC Chairman Ajit Pai  |  Speech  |  Federal Communications Commission

I was at the White House for a summit on 5G. Notably, this summit was spearheaded by the National Economic Council. NEC’s ownership of this event tells us that the White House sees wireless innovation as an issue of economic competitiveness, first and foremost. And I think that’s exactly right. 

The breakout session on the possible use cases and applications of 5G at the summit reminds us why all of this matters. It matters because of the businesses that will be able to grow and the new jobs that will create. It matters because it can unleash smart transportation networks that can reduce traffic, prevent deadly accidents, and limit pollution. It matters because of the lives that can be saved and the many more that can be improved with telemedicine. It matters because of the yet-to-be imagined innovations that will enrich our lives. That’s why we aim to build consensus around smart spectrum management practices for the future. Because this isn’t just about policy; it’s about unlocking possibilities for a better future.

Remarks of FCC Chief of Staff Matthew Berry at Americas Spectrum Management Conference

Matthew Berry  |  Speech  |  Federal Communications Commission

Over the past two days, you’ve heard discussions about the wide range of spectrum management opportunities and challenges in the Americas. But particularly when we think about 5G, the infrastructure piece of the puzzle is crucial. So even though this is the 7th Annual Americas Spectrum Management Conference, I’m pleased to be with you this afternoon to kick off this important panel on infrastructure. 

As Federal Communications Commission Chairman Ajit Pai has mentioned, the FCC’s top priority is closing the digital divide. And when you raise the cost of deploying wireless infrastructure, it is those who live in areas where the investment case is the most marginal—rural areas or lower-income urban areas—who are most at risk of losing out. We don’t want 5G to widen the digital divide; we want 5G to help close that divide.

The Good, the Bad, and the 5G

Michael Calabrese, Amir Nasr  |  Analysis  |  New America

The buzz over “5G,” the next generation of wireless technology, has been heating up, but most of the hype fails to account for the fact that a robust, innovative, and affordable 5G wireless ecosystem for all Americans will not result from empowering and allocating the best public airwaves to the four nationwide mobile carriers alone. America’s wireless future depends on enabling the development of a diverse set of network providers, empowering smaller providers to supplement the coverage of the major carriers, and strengthening unlicensed technologies such as Wi-Fi. The mobile industry has pressured the Federal Communications Commission (FCC) to enact policies to help them dominate the deployment of 5G domestically, allegedly because that will help the United States win the “race to 5G” globally. The FCC’s latest response, with respect to allocating critical mid-band spectrum, is a mixed decision: In a draft decision released October 2, the agency proposes giving the mobile industry a big win over smaller competitors and a wide range of industries, while also taking an important step to expand the availability of unlicensed spectrum needed for gigabit-fast Wi-Fi. At its October 23 meeting, the FCC is set to vote on two items.

AT&T is Leading the U.S. and the World on Mobile 5G

Chris Boyer  |  Press Release  |  AT&T

I had the opportunity to attend the White House 5G Summit. The event was focused on discussing issues such as 5G deployment, spectrum and standards that will enable the US to win the race on 5G.

The US government can implement policies to ensure that US leads on 5G by continuing to eliminate barriers to wireless deployment and making more spectrum available for commercial use. And the week of Sept 24, the Federal Communications Commission did just that by adopting a sensible framework for permitting and fees. On spectrum, the FCC has planned a series of auctions of high-band spectrum. It is critical that those auctions take place in a timely manner. It is equally important that additional mid-band spectrum be brought to market.  We look forward to continuing to work with federal, state and local governments to make the promise of 5G a reality for every American.

Wi-Fi now has version numbers, and Wi-Fi 6 comes out in 2019

Jacob Kastrenakes  |  Vox

In the past, Wi-Fi versions were identified by a letter or a pair of letters that referred to a wireless standard. The current version is 802.11ac, but before that, we had 802.11n, 802.11g, 802.11a, and 802.11b. It was not comprehensible, so the Wi-Fi Alliance — the group that stewards the implementation of Wi-Fi — is changing it. All of those convoluted codenames are being changed. So instead of the current Wi-Fi being called 802.11ac, it’ll be called Wi-Fi 5 (because it’s the fifth version). 

Now, instead of wondering whether “ac” is better than “n” or if the two versions even work together, you’ll just look at the number. In the future when you connect to a Wi-Fi network on your phone or laptop, your device will tell you what Wi-Fi version you’re connected to. That way, if two networks are available — one showing “4” and the other showing “5” — you’d be able to choose the newer, faster option. The next generation of Wi-Fi is on the horizon, with the promise of faster speeds and better performance when handling a multitude of devices. It was supposed to be called 802.11ax, but now it’ll go by a simpler name: Wi-Fi 6.

Ownership/Competition

Statement of Assistant Attorney General Makan Delrahim Before the Senate Subcommittee on Antitrust, Competition Policy and Consumer Rights

Assistant Attorney General Makan Delrahim  |  Department of Justice

The Antitrust Division has been extraordinarily busy in our daily efforts to protect consumers, workers, and entrepreneurs through sound and vigorous antitrust enforcement and competition advocacy throughout the government.  Apart from our direct enforcement efforts, the Division has implemented a wide range of initiatives designed to advance competition both nationally and internationally.  These efforts do not always draw the same interest as our enforcement cases, but can be just as essential, if not more so, to our efforts to protect American consumers and businesses.  

FTC Testifies before Subcommittee of Senate Committee on the Judiciary Regarding Oversight of Antitrust Enforcement

FTC Chairman Joseph Simons  |  Federal Trade Commission

In testimony before the Senate Subcommittee on Antitrust, Competition Policy and Consumer Rights, Federal Trade Commission Chairman Joseph Simons described the agency's enforcement of antitrust laws, advocacy work, and the public hearings it is hosting on a variety of competition and consumer protection issues. And he outlined a series of notable victories in stopping anticompetitive mergers and conduct. The widespread use of technology and data often offer consumer benefits, but may also raise new competition issues, according to the testimony. When appropriate, the Commission will take action to counter the harmful effects of coordinated or unilateral conduct by technology firms. As part of the agency’s commitment to efficient merger review, the Bureau of Competition is developing a more robust system of tracking key developments in the merger review process to determine whether reviews are taking longer. Armed with better information, the Bureau will assess what can be done to make the merger review process more efficient and less burdensome while still getting to the right outcome for consumers.

Back to Table of Contents

American Cable Association Letter on Antitrust to Senate Antitrust Subcommittee Leaders

Matthew Polka  |  Press Release  |  American Cable Association

I write on behalf of the American Cable Association (ACA) regarding your upcoming hearing on antitrust enforcement. [W]e believe we can provide a unique perspective on two sets of issues facing antitrust enforcement:

  1. Media Consolidation: Cable bills have increased in recent years. Media consolidation—both “vertical” mergers like AT&T-Time Warner and “horizontal” ones like the proposed Sinclair-Tribune combination—is in no small part responsible for this problem. Further consolidation threatens to exacerbate the problem, leading to even higher cable bills, particularly for customers of smaller operators.
  2. Broadband Service: The larger platform firms and content distribution networks can dictate terms to smaller Internet service providers (ISPs), just as upstream programmers do in the video market. Already, many smaller ISPs are unable to get these firms to enter into arrangements to improve service for their customers. Should such practices continue and become even more extensive, smaller ISPs will be put at a competitive disadvantage and their customers will have reduced choice and pay higher prices for service.

FTC Announces Agenda for the Oct 15-17 Hearings on Competition and Consumer Protection

Press Release  |  Federal Trade Commission

The Federal Trade Commission announced the agenda for its Hearings initiative with three full-day sessions, co-sponsored with the Global Antitrust Institute and held at the Antonin Scalia Law School of George Mason University in Arlington (VA) on Oct 15-17, 2018. The three-day event will examine the potential for collusive, exclusionary, and predatory conduct in multi-sided, technology-based platform industries. The sessions will also examine antitrust frameworks for evaluating acquisitions of nascent competitors or occurring in nascent markets, including in the technology and digital marketplace; and the approach to addressing antitrust issues regarding labor markets. The Commission invites public comment on these issues, which can be submitted electronically no later than Dec 14, 2018.


Privacy/Security

Groups File Complaint With FTC Over Kids Messenger App

John Eggerton  |  Broadcasting&Cable

A complaint spearheaded by the Campaign for a Commercial-Free Childhood (CCFC) and drawn up by the Communications & Technology Law Clinic at the Institute for Public Representation at Georgetown University Law Center has been filed with the Federal Trade Commission against Facebook, over Facebook's collection of children's personal information without obtaining the requisite parental permission. The complaint is leveled against the Messenger Kids app, a social media platform for children as young as five. The app does have a parental consent mechanism, but the groups say it does not meet the requirements of the Children's Online Privacy Protection Act (COPPA) because it is not "reasonably Calculated" to make sure the permission-giving is actually the parent. They say they tested the app and any "fictional" parent can set up the app and immediately approve a child's account without proof of identity. They also say the the privacy policy is "incomplete and vague."

Facebook Briefs Lawmakers on Breach in Effort to Guard Against Backlash

Deepa Seetharaman, Dustin Volz  |  Wall Street Journal

Facebook officials have begun briefing lawmakers about its massive security breach as the social-media company tries to quell a potential backlash in Washington over its latest setback involving user data. Facebook briefed Department of Homeland Security officials the week of Sept 24 and some individual lawmakers the following week, apparently. The company is expected to meet with other congressional committees, including the Senate Intelligence Committee, about the breach as early as the week of Oct 1. It isn’t clear whether Facebook provided information pointing to possible perpetrators or about how the hackers exploited the security flaws. 


Advertising

Mainstream advertising is still showing up on polarizing and misleading sites — despite efforts to stop it

Craig Timberg, Elizabeth Dwoskin, Andrew Ba Tran  |  Washington Post

Online advertising systems regularly put mainstream ads alongside content from the political fringes — and dollars in the pockets of those producing polarizing and politically charged headlines. This mismatch of online content and ads, which digital advertising companies have been working to fix, goes to the heart of how the Internet economy works. Tens of billions of dollars are at stake in the promises of online ad systems to match advertising pitches with receptive targets. But the automated systems that place many of these ads are driven by sophisticated, proprietary algorithms that are hard for advertisers to understand or control, many complain. These systems, which have powered the rise of Google, Facebook and dozens of lesser-known technology companies, also can have the unintended effect of fueling the creation and spread of extreme content online — on both the political left and the right — independent researchers and industry experts say. Sensationalized headlines bring clicks. Clicks bring ads. Ads bring revenue. And the advertisers often have limited options for avoiding potentially objectionable websites.

Elections

Disinformation, 'Fake News’ and Influence Campaigns on Twitter‘

Matthew Hindman, Vlad Barash  |  Research  |  Knight Foundation

How did misinformation spread during the 2016 presidential election and has anything changed since? A new study of more than 10 million tweets from 700,000 Twitter accounts that linked to more than 600 misinformation and conspiracy news outlets answers this question, revealing that the concentrated “fake news” ecosystem active during the 2016 election is still in place today. The report highlights more than 6.6 million tweets linking to fake news and conspiracy news publishers in the month before the 2016 election. The problem persisted in the aftermath of the election with 4 million tweets to fake and conspiracy news publishers found from mid-March to mid-April 2017. More than 80 percent of accounts that repeatedly spread misinformation during the 2016 election campaign are still active, and they continue to publish more than a million tweets on a typical day. The study includes detailed maps of the networks of accounts that spread misinformation. These show the structural relationships between accounts that link to sites identified as “fake and conspiracy news,” and illustrate how specific stories and hashtags are shared. Network analysis identifies a dense “disinformation supercluster” containing thousands of accounts that repeatedly post links to fake and conspiracy news.

Policymakers

What You Stand For

Adrianne Furniss  |  Editorial  |  Benton Foundation

We all know Michael J. Copps as a person and a public official. But I want to speak to Michael’s values. As an FCC Commissioner, Michael Copps brought the FCC to the public and the public to the FCC. He engaged broad constituencies in policy discussions. Among these, he valued input and participation from groups he termed “non-traditional stakeholders" like civil rights groups, Native Americans, people with disabilities, and other marginalized communities. By approaching these groups, Michael sought to expand the pool of legitimate stakeholders and participants in media policy decisions, with the assumption that this would also ultimately broaden the range of voices and views represented within our media and improve newsroom diversity. This is as important today as it was during his tenure.  The fight for media democracy—to which Michael has dedicated much of his professional life—is ongoing. Michael continues to advocate passionately for the policy positions that he championed as FCC commissioner. He has done so by partnering with Common Cause, Free Press, Public Knowledge, and the Benton Foundation. His fight is our fight. 


Stories From Abroad

Facebook faces $1.6 billion fine and formal investigation from Irish Data Protection Commission over massive data breach

Olivia Solon  |  Guardian, The

The Irish Data Protection Commission has opened a formal investigation into a data breach that affected nearly 50 million Facebook accounts, which could result in a fine of up to $1.63 billion. The breach, which was discovered by Facebook engineers on Sept 24, gave hackers the ability to take over users’ accounts. It was patched on Sept 27, the company said. “The investigation will examine Facebook’s compliance with its obligation under the General Data Protection Regulation (GDPR) to implement appropriate technical and organisational measures to ensure the security and safeguarding of the personal data it processes,” the commission said. The commission noted that Facebook had informed the commission that its internal investigation was continuing and that the company continued “to take remedial actions to mitigate the potential risk to users”.

Google’s plans for first wired urban community raise data-privacy concerns

Rob Gillies  |  Associated Press

Sidewalk Labs, a unit of Google’s parent company Alphabet, is proposing to turn a rundown part of Toronto’s waterfront into what may be the most wired community in history — to “fundamentally refine what urban life can be.” High-level interest is clear: Canadian Prime Minister Justin Trudeau and Alphabet’s then-Executive Chairman Eric Schmidt appeared together to announce the plan Oct 2017. But some Canadians are rethinking the privacy implications of giving one of the most data-hungry companies on the planet the means to wire up everything from streetlights to pavement. And some want the public to get a cut of the revenue from products developed using Canada’s largest city as an urban laboratory. 

Julie Di Lorenzo, a prominent Toronto developer who resigned from the Waterfront Toronto board over the project, said, “How can (Waterfront Toronto), a corporation established by three levels of democratically elected government, have shared values with a limited, for-profit company whose premise is embedded data collection?”

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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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