Daily Digest 11/13/2017 (AT&T, Time Warner, and so much more)

Benton Foundation

Ownership

Is AT&T/Time Warner a Bad Deal? Or Getting a Bad Deal?

News broke on November 8 that the Department of Justice is seeking to alter, if not block, AT&T’s proposed purchase of Time Warner. What until recently had seemed like a done deal is now up in the air. And different narratives are emerging. Did the DOJ request AT&T sell off Time Warner's CNN in order to approve the deal? Is the DOJ responding to President Donald Trump’s many complaints about CNN, essentially punishing a news organization for unfavorable coverage? Or is the DOJ seeking to enforce populist antitrust policy, something promised by Trump during the Presidential campaign? While preventing the deal is aligned with the public interest community, the unclear motivations are heightening concerns over what may be the government's actions catching up with Trump’s rhetoric.

President Trump said he ‘didn’t make that decision’ to potentially force AT&T and Time Warner to sell CNN

President Donald Trump appeared to stress that he had not intervened in AT&T’s bid to buy Time Warner — nor did he seek to require that the companies sell CNN in order to obtain the US government’s approval of the deal. Speaking to reporters on Air Force One, President Trump said he “didn’t make that decision — it was made by a man who’s a very respected person, a very, very respected person.” The “decision” appears to refer to reports that the Justice Department would seek to block the merger, unless AT&T sold off assets perhaps including CNN, and the person that President Trump highlights is likely Makan Delrahim, the antitrust chief at DOJ. “I did make a comment as to what I think,” President Trump also acknowledged. Previously, the president has blasted AT&T and Time Warner’s merger plans — and during the 2016 election, he threatened to block the companies from combining under his watch.

Senior White House Advisor Jared Kushner to CNN: Fire 20 percent of your staff

President Donald Trump’s senior adviser and son-in-law Jared Kushner is still upset with CNN. Kushner met with Gary Ginsberg, a top executive at Time Warner, CNN’s parent company. In the meeting, Kushner told Ginsberg CNN should fire 20 percent of its staff because of its coverage of the 2016 presidential election. A White House official said that Kushner’s remark wasn’t serious, and that he “was simply trying to make a point.” It seems like the Trump administration’s feud with CNN isn’t going away. When Kushner took more control of his father-in-law’s presidential campaign, he started complaining to CNN executives about its Trump coverage. He was particularly angry after CNN fact-checked a speech Trump gave on June 22 and threatened to keep campaign members from appearing on the network.

via Vox

The arguments behind DOJ’s looming lawsuit with AT&T

As the Justice Department prepares for a legal showdown with AT&T over its $85 billion bid for Time Warner, analysts are debating whether the acquisition has potential harms for consumers and business competition that could sink the deal in court. One central concern at Justice is that AT&T could seek to deny other providers of TV and Internet, such as Comcast and Verizon, access to Time Warner's programming, and that it could prevent the rise of new technologies aimed at delivering content to consumers. Time Warner owns a substantial library of content. Under AT&T's control, that content might be blocked from viewers who are customers, for instance, of Comcast's cable TV product, critics of the deal say.

Why Blocking the AT&T-Time Warner Merger Might Be Right

The DOJ’s Case Against AT&T Is Stronger Than You Think — Again.

Demanding divestiture of either the must have content or the DIRECTV distribution platform is precisely the remedy you would expect if you believe the deal presents significant harm because of the vertical integration issues. That’s been the position of my employer, Public Knowledge, which has opposed the transaction since AT&T announced the deal. (That predates Trump’s election, for those of you wondering.) If you want a more detailed understanding of the theory of the harms, you can find it in my boss Gene Kimmelman’s testimony to Congress here.

Democratic Senators demand answers over reports DOJ wanted CNN sold

A group of Democratic Sens is demanding answers from the Trump administration over news reports that the Department of Justice asked AT&T to sell CNN as a condition for allowing a merger between AT&T and Time Warner. Senate Judiciary Antitrust Subcommittee Ranking Member Amy Klobuchar (D-MN) and a group of fellow Democrats sent a letter Nov 10 to President Donald Trump and Assistant Attorney General Makan Delrahim over the possibility of "undue interference" by Trump in the agency's antitrust enforcement.

AT&T-Time Warner Merger in Jeopardy: 5 Scenarios for What Happens Next

[Commentary] For over four decades, the Federal Communications Commission has restricted the ability of broadcast media outlets to also own newspapers, and vice versa, in the same market, under what is known as the newspaper-broadcast cross-ownership rule. This rule was established in 1975 with the stated purpose of preserving and promoting a diversity of viewpoints. Arguably, it made sense at the time. But with the internet now dominating the news landscape, the rule is no longer needed, and may actually be undermining the diversity of viewpoints it was intended to foster. The FCC is scheduled to vote at its meeting Nov 16 to repeal the newspaper-broadcast cross-ownership rule. This common-sense move is not only long overdue.

Keynote Address of Chairman Pai at the Reason Media Awards

Pai's Big-Media Handout Won't Help Communities

Sinclair Also Targeting DOJ Ownership Cap

FCC approves CBS-Entercom Merger with conditions

The Federal Communications Commission's grant the Merger and Divestiture Applications subject to certain conditions, and also grant the associated waivers on a temporary basis. The proposed transaction encompasses all of Entercom’s 127 and CBS’s 117 radio stations. Pursuant to an Agreement and Plan of Merger: (1) CBS Radio (CBSR) will be separated from CBS pursuant to a Master Separations Agreement; and (2) a wholly owned subsidiary of Entercom (Constitution Merger Sub Corp.) will merge with CBSR, with the merged CBSR surviving as a wholly owned subsidiary of Entercom.

 

Scott Cleland: Google Amazon & Facebook are Standard Monopoly Distribution Networks

Internet/Broadband/Telecom

FCC Mediating AT&T Redlining Complaint

The Federal Communications Commission is attempting to mediate the broadband redlining complaint filed against AT&T by attorney Daryl Parks on behalf of "Cleveland broadband consumers," according to Parks, who says he is ready to talk, but also to sue. According to Parks' office, they are scheduled for a Nov. 13-14 session with AT&T and FCC staffers to try and resolve the complaint. "It is my sincere desire to resolve these matters during the November 13 - 14 FCC staff monitored mediation session," said Parks. "However, I am preparing to litigate and win on behalf of my clients and our communities."  To that end, Parks says he has employed several lawyers, including Andrew Jay Schwartzman of Georgetown University Law Center, a veteran public interest attorney specializing in communications access issues, saying while he hopes mediation is the ticket, "we are preparing to fight and win.

Civil Rights Groups Question Lifeline Changes

The National Hispanic Media Coalition, Color of Change, NAACP and the Benton Foundation are among the organizations concerned about proposed changes to the Lifeline program, which is on the docket for the Federal Communications Commission’s upcoming open meeting. FCC Chairman Ajit Pai -- who has long called for reforms to deter waste, fraud and abuse in Lifeline -- is seeking a vote at the agency’s Nov. 16 meeting on a major overhaul of the program, which subsidizes phone and broadband service for the poor. Among his proposals is a plan to eliminate funding for so-called wireless resellers like TracFone, which rely on another carrier’s network to provide service.

Remarks of Commissioner O'Rielly Before the Broadband Deployment Advisory Committee

Remarks of Commissioner Clyburn at Broadband Deployment Advisory Committee

Public Interest Groups Urge FCC Chairman to Maintain Tech Transition Rules, Protect Consumers

Public Knowledge joined Communications Workers of America and 20 rural, consumer, civil rights, labor, and other groups in a letter urging Federal Communications Commission Chairman Ajit Pai to retain the agency’s tech transitions rules that protect consumers while providers like Verizon transition from copper to fiber networks. The agency plans to roll back these consumer protections on November 16, effectively downgrading rural America. Public Knowledge also joined Communications Workers of America, Institute for Local Self Reliance, National Digital Inclusion Alliance, National Hispanic Media Coalition, and Kentucky Resources Council in an ex parte filing urging the FCC to protect the public interest by maintaining the agency’s existing copper retirement notification rules.

 

Project Loon delivers internet service to 100,000 people in Puerto Rico (Vox)

Television

Rep Dingell Has Privacy Concerns Over ATSC 3.0

Rep. Debbie Dingell (D-MI) has privacy concerns about the new ATSC 3.0 next generation broadcast transmission standard and has asked both the Federal Communications Commission and the National Association of Broadcasters for some answers. That came in letters to FCC Chairman Ajit Pai and NAB President Gordon Smith (himself a former member of Congress). Rep Dingell wants some answers from both on what types of information broadcasters will be able to collect from consumers and how it will be handled and protected. She signaled her concerns in a House Communications Subcommittee FCC oversight hearing in October.

Commissioner Rosenworel Remarks "The Next Generation TV Transition"

Where We Are on TV Report - 2017

The Where We Are on TV report analyzes the overall diversity of primetime scripted series regulars on broadcast networks and looks at the number of LGBTQ characters on cable networks and streaming services for the 2017-2018 TV season. 

via GLAAD
Journalism

How the news media activate public expression and influence national agendas

We demonstrate that exposure to the news media causes Americans to take public stands on specific issues, join national policy conversations, and express themselves publicly—all key components of democratic politics—more often than they would otherwise. After recruiting 48 mostly small media outlets, we chose groups of these outlets to write and publish articles on subjects we approved, on dates we randomly assigned. We estimated the causal effect on proximal measures, such as website pageviews and Twitter discussion of the articles’ specific subjects, and distal ones, such as national Twitter conversation in broad policy areas. Our intervention increased discussion in each broad policy area by ~62.7% (relative to a day’s volume), accounting for 13,166 additional posts over the treatment week, with similar effects across population subgroups.

Privacy/Security

Security Breach and Spilled Secrets Have Shaken the NSA to Its Core

A serial leak of the National Security Agency’s cyberweapons has damaged morale, slowed intelligence operations and resulted in hacking attacks on businesses and civilians worldwide.

Twitter says its system is 'broken' after far-right organiser wins blue tick

Jack Dorsey, the chief executive of Twitter, has said its “blue tick” verification process is “broken” after it verified the organiser of a far-right rally. Twitter  was criticised after Jason Kessler, who organised the Unite the Right rally which sparked violence in the US town of Charlottesville in August, tweeted on Wednesday to confirm he had been verified by the platform. Twitter’s official support account confirmed that its verification system had been “paused” following the backlash. “Verification was meant to authenticate identity and voice but it is interpreted as an endorsement or an indicator of importance,” the company tweeted. “We recognise that we have created this confusion and need to resolve it.

Renee DiResta Warned of ‘Peer-to-Peer Misinformation.’ Congress Listened. (New York Times)

Policymakers

The Corporate Takeover of the Trump-FCC Is in Full Attack Mode.

[Commentary] In every industry we hear horror stories of how the government agencies that are supposed to provide oversight of the companies and protect the public interest have been taken over by the industry. The Federal Communications Commission, which has oversight over most of the phone and cable companies’ business – i.e., the wireline, wireless, satellite, cable, TV, Internet, broadband, phone and data service services—all communications services—has been captured. FCC Chairman Pai is a former Verizon attorney; FCC Commissioner Carr worked with Verizon, AT&T, and the wireless and phone associations as a lawyer for Wiley Rein; and FCC Commissioner O’Reilly is a friend of ALEC, which creates model legislation, mostly funded and designed for Verizon and AT&T. This “Gang of 3” has been moved into position and has been given a ‘voting block’ to speed along any proceeding.

One year after President Trump’s election, these 11 science and tech posts in government are still lacking leaders (Vox) 

House Judiciary Committee Chairman Bob Goodlatte to retire (Broadcasting&Cable)

Elections

Democratic Representatives push FEC for tougher action on foreign election meddling

Democratic Reps are pushing the Federal Elections Commission to take more aggressive action in curbing foreign influence in US elections.  Eighteen members of Congress led by Democracy Reform Task Force Chair Rep John Sarbanes (D-MD) urged the FEC in a letter on Nov 9 to treat political advertisements on social media platforms in the same way that it treats TV or radio ads. Rep Sarbanes and company argued that with such measures in place, foreign manipulation of social media platforms during the 2016 U.S. election would not have happened.  “There is reason to believe that if we had a more effective disclaimer regime for political internet advertisements during the 2016 election cycle, a portion of the illicit foreign campaign spending might have been prevented,” the lawmakers wrote.

 

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