Daily Digest 11/17/2017 (What Did the FCC Do?)

Benton Foundation

Spectrum and a speech by FCC Chairman Ajit Pai on today's agenda https://www.benton.org/events

News From the FCC Meeting

FCC Moves to Transform Lifeline Program for Low-Income Americans

The Federal Communications Commission took steps to transform its Lifeline program. A Fourth Report and Order, Order on Reconsideration, and Memorandum Opinion and Order changes FCC rules to:

  • Incentivize deployment on Tribal lands by limiting “enhanced” Tribal Lifeline support – $25 monthly in addition to the standard $9.25 per household – to facilities-based providers
  • Reduce program waste by limiting enhanced Tribal support to rural areas and eliminating enhanced support in urban areas, where the additional $25 a month is not required to make service affordable or to promote deployment
  • Increase consumer choice by eliminating restrictions that barred Lifeline consumers from changing Lifeline providers for a year
  • Protect consumers and the program by clarifying that Lifeline support is only available for mobile broadband at 3G or better levels, barring support for so-called “premium WiFi” services that require use at a Wi-Fi hotspot

A Notice of Proposed Rulemaking seeks comment on:

  • Spurring investment in deployment and reducing waste, fraud, and abuse by limiting Lifeline support to facilities-based providers
  • Protecting the program by restoring the traditional role of the states in approving participation of Lifeline-eligible providers
  • Protecting ratepayers, who pay for Lifeline through an assessment on their phone bills, by setting a self-enforcing budget cap on the program
  • Improving provider incentives to offer high quality services by establishing a maximum discount level for Lifeline-supported services

Finally, a Notice of Inquiry seeks comment on how to efficiently target more funds to areas and households most in need of help in obtaining digital opportunity. These areas would include rural and Tribal areas, as well as low-income urban areas that are likely to be underserved by providers.

Rep Matsui Leads 23 Commerce Committee Members in Calling for FCC to Reconsider Proposed Changes to Lifeline Program

Rep Doris Matsui (D-CA), along with 22 members of the House Commerce Committee, sent a letter to Chairman Ajit Pai urging the Federal Communications Commission to reconsider proposed changes to the Lifeline program. “Now more than ever, the wake of this year’s natural disasters has shown the critical importance that a mobile connection – a literal lifeline – can play in getting Americans back on their feet. We are concerned that proposed changes to the Lifeline program could potentially strand millions of struggling families with no way to connect. With that in mind, we ask that you reconsider these proposals and instead focus the Commission’s efforts on ways to help these Americans now, when they need it most.”

FCC Chairman Pai Plans to Put an End to the US Commitment to Universal Service and Affordability

[Commentary] Under the guise of promoting network investment and deployment and enhancing consumer choice, Federal Communications Commission Chairman Ajit Pai’s attack on the Lifeline program does the complete opposite. His plan proposes to kick all non-facilities-based service providers out of the Lifeline program, which includes wireless carriers like Tracfone’s Safelink Wireless or Virgin Mobile’s Assurance Wireless, that don’t have their own networks but lease capacity from facilities-based providers (e.g., AT&T, Sprint) and serve approximately 70 percent of Lifeline subscribers. In many states, facilities-based providers have opted out of offering Lifeline-supported service altogether and prefer to allow non-facilities-based wireless providers to serve Lifeline subscribers and the low-income segments of the wireless market. The largest wireless carriers profit from this arrangement by leasing excess network capacity rather than letting it sit unused.

FCC Modernizes Broadcast Ownership Rules

The Federal Communications Commission voted to modernize its broadcast ownership rules and to help promote ownership diversity in the broadcast industry. The Order on Reconsideration:

  • Addresses several petitions for reconsideration of the Commission’s August 2016 Order in the 2010/2014 Quadrennial Regulatory Review that left the outdated broadcast ownership rules largely unchanged. Specifically, today the Commission eliminates the Newspaper/Broadcast Cross-Ownership Rule, Radio/Television Cross-Ownership Rule, and Television Joint Sales Agreement Attribution Rule.
  • Modifies the Local Television Ownership Rule to better reflect competitive conditions in local markets by eliminating the Eight-Voices Test, which requires at least eight independently owned television stations to remain in a market before any entity may own two television stations in that market. The Order permits exceptions to the prohibition on an entity owning two of the top four stations in a market if it can be shown that a particular transaction would be in the public interest.
  • The Order does not address the issue of the national ownership cap and the associated UHF discount which are not part of the Quadrennial Review, and which will be considered in a separate proceeding later in 2017.
  • In the Notice of Proposed Rulemaking, the Commission decides to establish, and seeks comment on how to implement and structure, a new incubator program in which established broadcasters would help facilitate entry by new voices into the marketplace by providing access to capital and/or technical expertise to new entrants and small businesses.

FCC's New Media Ownership Rules Fail the Test (Benton Foundation)

FCC Adopts New Telecommunications Transition Rules

The Federal Communications Commission enacted reforms that will better enable providers to invest in next-generation networks. The FCC is also seeking comment on additional reforms, including how the FCC can expedite rebuilding and repairing broadband infrastructure after natural disasters.

One set of changes approved govern access to utility poles and conduits, which can be a costly and time-consuming barrier to broadband deployment. Changes include rules that:

  • Reduce costs faced by broadband providers by barring pole owners from charging for certain costs they have already recovered from others (called make-ready fees).
  • Speed resolution of pole attachment disputes by the FCC’s Enforcement Bureau through use of a 180-day “shot clock.”
  • Allow local providers equal access to each other’s poles.

Another set of reforms revise rules that needlessly delay or even stop companies from replacing copper with fiber and that delay discontinuance of technologies from the 1970s in favor of services using Internet Protocol (IP) technologies. The reforms will:

  • Allow providers to notify customers, including federal agencies, earlier of upcoming network changes and copper retirements.
  • Reduce consumer confusion and carrier burden caused by duplicative Commissionmandated copper retirement notices.
  • Speed the timeframe for upgrading copper to fiber.
  • Expedite applications filed by carriers seeking to: (1) stop taking new customers for lowspeed voice and data services; (2) discontinue previously “grandfathered” low-speed data services; and (3) discontinue low-speed services for which there are no customers.
  • Eliminate section 214(a) discontinuance requirements for solely wholesale services. 
  • Reverse a 2014 interpretation that diverted investment from next-generation networks by requiring carriers to receive FCC approval before upgrading legacy services.

FCC Streamlines Requirements for Utility Pole Replacements

The Federal Communications Commission acted to remove barriers to wireless infrastructure deployment by determining that replacement utility poles that have no potential effect on historic properties do not need to complete historic preservation review. Specifically, the Order eliminates historic preservation review when a pole is replaced with a substantially identical pole. Some of the conditions the replacement pole must meet include that the original pole is not a historic property, that it does not cause new ground disturbance, and that it is consistent with various other size, location, and appearance restrictions detailed in the rule. The Order also consolidates the Commission’s historic preservation review rules and procedures, currently in a variety of rules and orders, into a single rule, making it simpler to find, understand, and comply with the rules.

FCC Takes Next Steps to Facilitate Spectrum Frontiers

The Federal Communications Commission took additional steps today to make available spectrum above 24 GHz to help ensure American leadership in wireless broadband, which represents a critical component of economic growth, job creation, public safety, and global competitiveness. 

Specifically, the FCC now:

  • Makes available an additional 1700 megahertz of millimeter wave (mmW) spectrum for terrestrial 5G wireless use;
  • Maintains the unlicensed use of the 64-71 GHz band, and modifies Part 15 rules to allow unlicensed operation on board most aircraft during flight in the 57-71 GHz band;
  • Maintains spectrum in the 48.2-50.2 GHz and 40-42 GHz bands for satellite use;
  • Adjusts the earth station siting rules in core terrestrial wireless bands to provide incentives to site satellite earth stations in less populated areas while continuing to limit the potential for interference of satellite operations to mobile wireless use in these bands; and
  • Declines to cap the amount of spectrum in the 24 GHz and 47 GHz bands that a bidder can acquire in an auction, and incorporates these two bands into the previously-adopted mmW spectrum threshold for reviewing proposed secondary market transactions.

In addition, the Further Notice of Proposed Rulemaking:

  • Proposes to allow more flexible FSS (fixed-satellite service) use of the 24.75-25.25 GHz band;
  • Seeks comment on another option for terrestrial mmW licensees to meet performance obligations, which could accommodate IoT deployments and other innovative services; and
  • Proposes to eliminate the cap on the amount of spectrum in the 28, 37, and 39 GHz bands that a bidder can acquire in an auction.

FCC Authorizes Next Gen TV Broadcast Standard

The Federal Communications Commission adopted new rules to let television broadcasters use the Next Generation broadcast television transmission standard, also called ATSC 3.0, on a voluntary, market-driven basis. The action adopts rules that will allow broadcasters the flexibility to deploy Next Generation TV service while minimizing the impact on consumers and industry stakeholders. The upgraded technology will merge the capabilities of over-the-air broadcasting with the broadband viewing and information delivery methods of the Internet using the same 6 MHz channels presently allocated for digital television (DTV). Among other things, the Report & Order:

  • Requires broadcasters that use Next Generation TV to partner with another local station in their market to simulcast their programming in the current DTV standard, called ATSC 1.0, so that viewers can continue to receive their existing broadcast service without having to purchase new equipment
  • Subjects Next Gen TV signals to the public interest obligations that currently apply to television broadcasters
  • Requires broadcasters to provide advance on-air notifications to educate consumers about Next Generation TV service deployment and simulcasting.

FCC Reexamines Need for Cable Data Collection Form

The Federal Communications Commission issued a Notice of Proposed Rulemaking that seeks comment on whether to eliminate Form 325, which collects information about cable system operations, or, in the alternative, on ways to modernize and streamline the form to reflect technological and industry changes since the form was last updated in 1999. Form 325 must be filed annually by all cable systems with 20,000 or more subscribers and by a sample of small cable systems with fewer than 20,000 subscribers. The Notice asks whether the costs of the Form 325 data collection now exceed the benefits of the information collected and whether there are less burdensome ways for the Commission to obtain this data. This is the third rulemaking that the FCC has begun as part of its Modernization of Media Regulation Initiative launched in May 2017. The goal of the initiative is to reduce unnecessary regulation that can impede competition and innovation in media markets.

FCC Adopts Rules to Help Block Illegal Robocalls

The Federal Communications Commission approved new rules to protect consumers from unwanted robocalls, allowing phone companies to proactively block calls that are likely to be fraudulent because they come from certain types of phone numbers. The new rules expressly authorize voice service providers to block robocalls that appear to be from telephone numbers that do not or cannot make outgoing calls, without running afoul of the FCC’s call completion rules. As a result of today’s action, voice service providers will be allowed to block calls purporting to be from a phone number placed on a “do not originate” list by the number’s subscriber. They will also be allowed to block calls purporting to be from invalid numbers, like those with area codes that don’t exist, from numbers that have not been assigned to a provider, and from numbers allocated to a provider but not currently in use.

Network Neutrality

FCC Plans December Vote to Kill Net Neutrality Rules

The Federal Communications Commission is planning a vote in December to kill Obama-era rules demanding fair treatment of web traffic and may decide to vacate the regulations altogether, according to people familiar with the plans. FCC Chairman Pai may call for vacating the rules except for portions that mandate internet service providers inform customers about their practices -- one of the more severe options that would please broadband providers. They argue the FCC’s rules aren’t needed and discourage investment, in part because they subject companies to complex and unpredictable regulations. Chairman Pai could also choose not to find authority in the FCC’s powers to promote broadband. That would leave the rules without an apparent legal footing, leading in turn to a conclusion the agency lacks authority even to issue revised, less-stringent regulations.

Protect net neutrality and Internet freedom

[Commentary] How do you use the World Wide Web? People use it for all kinds of different things: to read email, post an update on social media, check in to a work meeting, navigate to a destination, enjoy a favorite song or album. It’s your choice. When I invented the World Wide Web as an information sharing system in 1989, I aimed to create a neutral space where everyone could create, share, debate, innovate, learn and dream. That’s why I gave my invention away for free, so that anyone, anywhere could access and build on it without permission. My vision was an online space that would give people freedom — and America’s entrepreneurial, optimistic spirit embraced it with enthusiasm. In the early days, there was a wonderful spirit of empowerment of individuals. I could read any blog I liked, and I could write my own blog with links pointing to my favorite things. Anyone could put their small business online. Now that vision is threatened.

Elections

Rep Eshoo Wants FCC Investigation of RT, Sputnik Broadcasts

Rep Anna Eshoo (D-CA) has called on Federal Communications Commission Chairman Ajit Pai to investigate Russian state-sponsored media outlets RT and Sputnik. She points out that the US intelligence community has concluded both meddled in the elections and also that this is her third letter she has sent to the chairman seeking an investigation. She says Pai's responses to the previous two were to dismiss her concerns while failing to fully address them. She wants the FCC to look into the following: "Were RT and Sputnik transmitting over US airwave licensee stations and were those broadcast stations in compliance with FCC foreign sponsorship disclosure rules at that time? For what percentage of airtime were the broadcasters transmitting broadcast from RT and Sputnik, respectively?

Journalism

A photo shows Al Franken touching Leeann Tweeden’s chest. Many media reports still say he ‘allegedly’ groped her.

The photo is clear: Sen Al Franken (D-MN) is touching the chest of journalist Leeann Tweeden while Tweeden slept on the plane ride home from a USO tour in 2006. Nevertheless, many news outlets have cautiously reported the act preserved on camera as an accusation, informing audiences that Tweeden alleges or says Franken groped her. Some women's rights advocates chafe at the media's delicate approach, which has been pretty consistent across a range of editorial perspectives.

Ownership

DOJ Antitrust Chief’s Speech Sends Another Signal on AT&T Deal

Makan Delrahim, the Justice Department’s new antitrust chief, made clear he doesn’t favor approving mergers based on corporate commitments to refrain from particular conduct, another potentially ominous sign for AT&T-Time Warner. The issue has proved a key one in discussions between the companies and the Justice Department. The AT&T-Time Warner transaction is a vertical merger that combines complementary companies instead of direct competitors. In the past, the Justice Department has shown a willingness to approve such deals, even if they raised competition concerns, so long as the merging parties agreed to so-called behavioral remedies. Speaking at an American Bar Association conference, Makan Delrahim said there was bipartisan agreement that behavioral conditions have often proved to be inadequate.

With AT&T and Time Warner, Battle Lines Form for an Epic Antitrust Case

[Commentary] If the government goes to court to block the merger of AT&T and Time Warner, as seems increasingly likely, it may well be the antitrust case of the decade, even without the claims of presidential meddling that have already engulfed the deal in partisan controversy. A lawsuit by the Justice Department, along with its earlier, widely reported demands that AT&T sell either DirecTV or Turner Broadcasting to gain approval for the deal, would mark a radical departure from decades of antitrust enforcement policy, both in defining what is an unlawful anticompetitive merger and in fashioning a remedy to cure the problems. That’s because the combination of AT&T and Time Warner is what’s known as a “vertical” merger, meaning that the two companies don’t compete to any significant degree in their primary lines of business, which are telecommunications (AT&T) and entertainment (Time Warner).

Content

Google Has Picked an Answer for You—Too Bad It’s Often Wrong

Google became the world’s go-to source of information by ranking billions of links from millions of sources. Now, for many queries, the company is presenting itself as the authority on truth by promoting a single search result as the answer. The promoted answers, called featured snippets, are outlined in boxes above other results and presented in larger type, often with images. Google’s voice assistant sometimes reads them aloud. They give Google’s secret algorithms even greater power to shape public opinion, given that surveys show people consider search engines their most-trusted source of information, over traditional media or social media.Google typically lists the source below the answer—or credits the source first when reading an answer aloud—but not always. 

 

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