Monday, November 11, 2019
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Broadband/Telecom
Sens Shelley Moore Capito (R-WV) and Jacky Rosen (D-NV) announced the introduction of their Broadband Parity Act, bipartisan legislation that would bring all federal broadband programs to the current definition of what the Federal Communications Commission defines as high-speed internet (currently 25/3 Mbps). Their bill would ensure that all communities and entities receiving federal broadband support have access to internet service that is actually at broadband speeds. Currently, there are over twenty federal broadband programs promoting access to fixed broadband service. However, each program follows its own set of guidelines for bandwidth speed. While some programs define an area as “served” when service is at 25/3 Mbps speeds, others define being served as having access to much slower 10/1 Mbps speeds. The discrepancy in bandwidth speeds means that the federal government is often investing in inadequate broadband services. The bill will remove inconsistencies in service and improve broadband access across the country, which is an essential step toward all Americans having equal access to healthcare, education, and economic opportunity.
“Access to high-speed internet is essential for economic growth, job creation, and an improved quality of life. Unfortunately, in states like West Virginia, many of our rural communities are being left behind as the digital divide grows,” Sen Capito said. “I’m glad to partner with Senator Rosen on this bill that will contribute to our ongoing efforts to close the digital divide by bringing parity on what defines high-speed broadband across all federal broadband programs.”
On Aug 8, 2019, House Appropriations Financial Services Subcommittee Chairman Mike Quigley (D-IL) wrote to Federal Communications Commission Chairman Ajit Pai to express concern about the FCC failing to act to stop abusive and unwarranted equipment rental fees for broadband service. "These unreasonable fees defy common sense and undermine the FCC's stated 'number one priority' of closing the digital divide." Chairman Quigley described a consumer in Texas who was charged a $10 "rental" fee by Frontier Communications for a router that they neither asked for nor ever received. "I find the lack of action to protect consumers troubling," he wrote.
On Nov 1, Chairman Pai responded by describing the informal complaint process available to consumers. He notes that in the past year, consumers filed approximately 450 informal complaints relating to broadband equipment rental fees. "With respect to jurisdiction over fees for equipment, the FCC does not regulate the fees charged — such matters lie within the purview of other agencies, such as the Federal Trade Commission." Chairman Pai went on to say that the Restoring Internet Freedom Order restored the broad authority of the FTC to take enforcement action against unfair acts or practices. "Informal complaints received by the [FCC] raising potentially unfair or deceptive billing practices by Internet service providers have been referred to the FTC."
The Federal Communications Commission's Wireline Competition Bureau issued an order granting two petitions seeking waiver of obligations to provide service to a specific number of locations as part of the rural broadband experiments program, filed by Allamakee-Clayton Electric Cooperative and Consolidated Communications Networks. The bureau said petitioners demonstrated the required number of locations exceeds the actual number the petitioners have been able to identify within their respective study areas. The bureau also said in granting these waiver requests, it made pro-rata adjustments to the petitioners’ support amounts and directed the Universal Service Administrative Company to prorate reductions in future payments for the remainder of the support term.
[On July 14, 2014, the FCC established the RBE program as part of its universal service high-cost program. The FCC designed this program to test future Connect America Fund (CAF) auction processes that would allocate support in price cap territories where the average cost of service exceeded a certain high-cost threshold, as determined by the Connect America Model (CAM). For this program, the FCC set bidding areas based on census block and limited available funding only to residential and small business locations in eligible high-cost census blocks. The FCC required successful bidders to serve every CAM-determined location within their winning bid areas (including locations for which no support had been allocated). In addition, RBE support recipients were required to submit information about their served locations on an annual basis and to certify, by certain deadlines, incremental progress in meeting their defined deployment obligations, measured as a percentage of their full obligation (build-out milestones).]
The lack of adequate bandwidth to properly power computers for homes, schools and businesses is a problem in some rural areas but also in some bigger cities, according to Matt Schmit, new director of the Illinois Office of Broadband in the state’s commerce department. Schmit, 39, a native of Red Wing, Minnesota, who has served in his home state’s Senate, took his post with the state of Illinois in early September and is now living in Evanston. In his role, he’ll oversee the $420 million the state is spending on broadband as part of the capital plan passed by the General Assembly last spring and being put into effect by the administration of Gov. J.B. Pritzker. “You tend to see metro areas with better service, but that’s not always the case,” Schmit said. “There are pockets of poor service in urban areas all over the country.” Schmit worked to expand broadband reach in Minnesota while in the legislature. He had won a four-year term in 2012 as a rural Democrat, but lost a bid for re-election in 2016. He said he had worked in the legislature to “bring people together and invest in infrastructure.” He said he’s been “blessed to be able to continue the work,” in part as an independent consultant — helping communities get broadband access. He’s also been an academic researcher and university instructor.
Internet usage is no longer a good deal in the US. In France, consumers pay about 90 euros (or $100) a month for a combination of broadband access, cable television and two mobile phones. A similar package in the United States usually costs more than twice as much. Many Americans have a choice between only two internet providers. A few companies have grown so large that they have the power to keep prices high and wages low.
What explains the difference? Politics. The European economy certainly has its problems, but antitrust policy isn’t one of them. The European Union has kept competition alive by blocking mergers and insisting that established companies make room for new entrants. In telecommunications, smaller companies often have the right to use infrastructure built by the giants. That’s why the French can choose among five internet providers, including a low-cost company that brought down prices for everyone. The irony is that Europe is implementing market-based ideas — like telecommunications deregulation and low-cost airlines — that Americans helped pioneer.
On November 5, the Federal Communications Commission gave its final OK, approving—with conditions—the transfer of control applications filed by T-Mobile and Sprint. T-Mobile's acquisition of Sprint was first announced April 29, 2018, touting the capacity to rapidly create a nationwide 5G network while offering lower prices, better quality, unmatched value, and greater competition. Is that where we've ended up? Although T-Mobile's acquisition of Sprint has gotten approval from both the U.S. Department of Justice and the FCC, the deal isn't done yet. Over a dozen states are challenging the deal in court. State attorneys general fear the merger would hurt competition, raise prices for cell service, result in a loss of retail jobs and lower wages for the employees who remain.
The Department of Justice announced that it has filed an amended complaint that adds Arkansas as a plaintiff in the suit and proposed settlement relating to the proposed merger of T-Mobile and Sprint.Arkansas joins Colorado, Florida, Kansas, Louisiana, Nebraska, Ohio, Oklahoma and South Dakota in the settlement, which is designed to launch Dish Network as a fourth nationwide provider of retail mobile wireless services. In addition to protecting competition, the proposed settlement will expedite the availability of high-quality 5G networks for American consumers and entrepreneurs.
Dish Networks Chairman Charlie Ergen pointed out that DISH’s new 5G network will be a greenfield network and should not be evaluated in the same way as an incumbent’s network. He said DISH’s network would cost less than other carriers’ networks because DISH plans to use next-generation technology, which relies much more on software than on expensive, proprietary hardware. “The cost structure goes down,” he said. “The vast majority of capex for the incumbents is not for 5G, it’s to maintain the legacy. We don’t have that cost going forward.” Ergen thinks it will cost about $10 billion to build out a new wireless network. Analyst Craig Moffett with Moffett Nathanson has scoffed at the figure, pointing out that Verizon spends $15 billion per year just to maintain its existing network. So will Ergebn use his own money to “backstop” Dish’s wireless offering? “I have liquidity,” he says.
The Federal Trade Commission announced a $60-million settlement from wireless giant AT&T for not playing straight with the public. The issue is "throttling" and wireless companies intentionally slowing down your speed to near unusable levels if you consume too much of its "unlimited" data. AT&T said it was sorry, that the practice was way in the past – dating back to 2011 – and that it had moved on to different policies. But, actually, AT&T hasn't stopped throttling. Neither has Verizon, T-Mobile or soon to be swallowed up Sprint. AT&T and its rivals are just more upfront about it now. What hasn't changed is the game of semantics the wireless companies play.
Makan Delrahim, the Justice Department’s top antitrust enforcer, warned tech giants that amassing vast quantities of consumers’ data could create competition concerns in the eyes of federal regulators, marking the US government’s latest shot across the bow at Silicon Valley. Speaking at conference hosted by a tech lobbying group, Delrahim said DOJ is “studying the ways market power can manifest in industries where data plays a key role." He stressed people’s private information had become the lucrative “oil” for the digital age — and its misuse could threaten to harm consumers and corporate competitors. While Delrahim did not mention any specific company by name, the comments could have vast implications at a moment when the agency is investigating tech giants including Google.
“Although privacy fits primarily within the realm of consumer protection law, it would be a grave mistake to believe that privacy concerns can never play a role in antitrust analysis,” Delrahim said. Later, he added, “Without competition, a dominant firm can more easily reduce quality — such as by decreasing privacy protections — without losing a significant number of users.”
Digital human rights are fast becoming the latest front in the debate around fund managers’ ethical investments efforts
Fallout from the Cambridge Analytica scandal that engulfed Facebook was a wake-up call for investors such as Boston Common Asset Management, underlining the damaging social effects of digital technology if left unchecked. “These are the red flags coming up for us again and again,” says Lauren Compere, director of shareholder engagement at Boston Common. Fund managers have come under pressure in recent years to divest from companies that can harm human rights — from gun manufacturers or retailers to operators of private prisons. The focus is now switching to the less tangible but equally serious human rights risks lurking in fund managers’ technology holdings. Attention on technology groups began with concerns around data privacy, but emerging focal points are targeted advertising and how companies deal with online extremism.
An international "grand committee" of lawmakers called for a pause on online micro-targeted political ads with false or misleading information until the area is regulated. The committee, formed to investigate disinformation, gathered in Dublin to hear evidence from Facebook, Twitter, Google, and other experts about online harms, hate speech and electoral interference. The meeting was attended by lawmakers from Australia, Finland, Estonia, Georgia, Singapore, the UK and United States.
Facebook is considering restricting politicians' ability to use highly detailed demographic and personal information to narrowly target would-be voters with ads, policy chief Nick Clegg confirmed in a possible shift in the social network's broadly permissive policy on political advertising. Clegg declined to discuss any other changes, saying the company is still in the decision-making process. But he said Facebook is also looking at "whether users are sufficiently aware of when they’re being exposed to political ads as opposed to organic content," the company's term for material such as ordinary users' posts. “We’re now working actively to reflect, in the face of all the criticisms, on what we should do to adjust our own posture on all this. We want to get this right,” Clegg said. "It's actually quite a good thing in the long run that we're having this debate now rather than two months before the election." Clegg reiterated that, even amid the policy tweaks Facebook is mulling, it won't be following Twitter's lead to block political ads entirely. "We don’t think getting out of political ads altogether is the answer," he said, arguing that Twitter's approach has a "ton of downsides," such as the difficulty of determining what counts as a political or issue ad and the disadvantage some argue such a ban places on non-incumbent politicians.
Privacy
House Commerce Committee Democratic Reps Request Update from FCC on Investigation of Unauthorized Real-Time Location Data Disclosures
Eleven House Commerce Committee Democratic Reps sent a letter to Federal Communications Commission Chairman Ajit Pai expressing growing concern that the FCC is failing to protect consumers’ privacy by refusing to hold wireless carriers accountable for unauthorized disclosures of consumers’ real-time location data. Over a year ago, in May 2018, it was reported that major wireless carriers were selling consumers’ real-time location data to third-party data aggregators. This location data was then easily purchased by other private companies, such as bounty hunters. The selling of this data was done without the consent or knowledge of the affected customers. On several occasions, Committee members have made it clear that the FCC must act expeditiously to fulfill its obligation to protect consumers’ privacy interests and hold carriers accountable to the extent they have violated the FCC’s rules. Yet, over a year later, the FCC is still dragging its feet and has failed to take any action to protect consumers’ privacy. Members of the subcommittee are requesting an update on the FCC’s investigation into the carriers’ disclosure of consumers’ real-time location data by Nov 29.
Mayor Pete Buttigieg (D-South bend), who has been a Silicon Valley favorite in the 2020 presidential race, is calling out several tech giants for harming workers. In his new policy plan, Mayor Buttigieg singles out Facebook, Google and Uber for troubling labor practices, and pledges to hold employers accountable under labor laws, strengthen unions and expand protections for gig workers. “The status quo with companies like Facebook and Uber setting the rules and government sitting on the sidelines must change,” the plan says. “Government and business policies have relentlessly tilted the balance of power away from workers and toward corporations. ... Bargaining does not even exist for some workers, especially for those who work for Uber, McDonald’s, Google, or countless other companies that claim they don’t directly employ their workers.” With the Democratic field dwindling and the final two Democratic debates of the year on the horizon, the Silicon Valley sweetheart is likely to face more pressure to articulate where — relative to Warren and other tech critics in the running — he stands on major tech policy issues.
The Federal Communications Commission has upheld an AT&T complaint against a number of TV station groups for failure to negotiate retransmission consent in good faith, a move pay-TV operators are hoping adds fuel to their argument for renewal of the satellite compulsory license law that includes that good faith mandate. The FCC didn't fine the stations, but left that big stick in sight, saying it reserved the right to take future enforcement actions, including potential fines or forfeitures (likely levied if the stations did not negotiate in good faith going forward). The complaints were filed June 2019 against Deerfield Media, GoCom Media, Howard Stirk Holdings, HSH, Mercury Broadcasting, MPS Media, KMTR Television, Second Generation of Iowa and Waitt Broadcasting, all of which the FCC says failed to meet its standard for good faith negotiation. All the groups were represented by Duane Lammers of Max Retrans, a past target of AT&T complaints.
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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