Monday, January 13, 2020
Headlines Daily Digest
Don't Miss:
The FCC's Latest Plan to Close the Rural Digital Divide
Senators Urge FCC Chairman to Provide Broadband for Rural Communities Before Expanding 5G Coverage
DOJ and FTC Announce Draft Vertical Merger Guidelines for Public Comment
Broadband/Internet
Wireless
Ownership
Platforms
Journalism
Emergency Communications
Health
Education
Government & Communications
Policymakers
Stories From Abroad
Broadband
This week we learned that the Federal Communications Commission will vote on its latest plan to subsidize broadband deployment in rural areas at its January meeting. The Rural Digital Opportunity Fund, first proposed by FCC Chairman Ajit Pai back in August, will provide up to $20.4 billion over the next decade to support the deployment of broadband networks in those parts of rural America that currently lack fixed broadband service that meets the FCC's baseline speed standards (25 Mbps download and 3 Mbps upload). The support is greatly needed to extend broadband's reach. But as my colleague, Robbie McBeath, asked this summer, can slapping "new and improved" on an existing program really close the Digital Divide?
Senators Joe Manchin (D-WV), James Lankford (R-OK), Jon Tester (D-MT), Marsha Blackburn (R-TN), and John Kennedy (R-LA) sent a letter to the Federal Communications Commission Chairman Ajit Pai urging the FCC to focus their efforts on providing reliable broadband to rural communities before expanding 5G coverage, as indicated by the announcement of the FCC’s 5G Fund.
While we commend the Federal Communications Commission for acknowledging that critical fact, we have some serious reservations about the recently announced 5G Fund and the decision to focus these limited mobile broadband deployment dollars on the promise of a 5G future when many places in our states still lack 4G service or do not have any service at all. To stand any chance of connecting rural Americans, the FCC needs a more accurate method of data collection, a strong challenge process, and a funding process that includes terrain factors to ensure that the hardest to serve places can compete for limited funding.
Sen John Kennedy (R-LA) is angling to hold more Federal Communications Commission hearings soon in his appropriations subcommittee overseeing the commission, still focused on how FCC Chairman Ajit Pai will structure a planned auction of 5G-friendly airwaves in the C-band. “Let me speak bluntly, we’re watching the FCC like a hawk,” said Sen Kennedy. “And once we finish impeachment, I’m probably going to hold more [appropriations] hearings to talk about the different options and alternatives that the FCC is considering on the type of public auction it’s going to hold.” Sen Kennedy said he hasn’t decided whether to invite Chairman Pai or simply agency staff but wants more “substantive” discussion and is “interested in hearing a lot more on how the FCC is planning on allocating or attempting to allocate the money.” Legislative negotiation is revving up among Chairman Kennedy and Senate Commerce leaders, which could dictate where auction proceeds go
Chairman Pai's Response to Reps Meng, Clyburn, Cox, Khanna, and Axne Regarding the Educational Broadband Service or 2.5GHz
On July 29, 2019, Reps Grace Meng (D-NY), James Clyburn (D-SC), TJ Cox (D-CA), Ro Khanna (D-CA), and Cindy Axne (D-IA) wrote to Federal Communications Commission Chairman Ajit Pai to express strong disapproval of the FCC's elimination of the educational requirements for the Educational Broadband Services (EBS) in the "Transforming the 2.5 GHz Band" Report and Order. "While there are elements of the FCC's action that benefit Tribal Nations-which we support- the disregard for the longstanding educational purposes of the 2.5 GHz spectrum is troubling and ill-advised," the wrote. "As Members of the House Majority Whip's Task Force on Rural Broadband, we urge you to reverse this decision."
On Dec 31, 2019, Chairman Pai responded by saying that the 2.5 GHz band offers great potential for supporting the deployment of wireless broadband services across the country, but unfortunately that potential has not been recognized in the nearly six-decade experience with the band. "The band—a public resource—is especially unused west of the Mississippi River. Moreover, what spectrum is in use is typically leased to commercial carriers by 'nonprofit' middlemen, including some that have found a lucrative revenue stream to use for their own political advocacy, not the education of America’s children." He continued, "This public resource should be devoted to the public—not to those who have indulged arbitrage for too many years. The best way to deliver mobile broadband services using the 2.5 GHz band, and thus to help close the digital divide across rural America, is to make it directly available through transparent, well-established FCC mechanisms." Chairman Pai then described the FCC's three-step strategy to facilitate the rapid deployment of wireless broadband services.
On Nov 6, 2019, Senator Ron Wyden (D-OR) wrote to Federal Communications Commission Chairman Ajit Pai to act to secure the nation's next-generation, 5G telephone networks. He asked Chairman Pai several questions to "help Congress and the American people understand the FCC's plans to address this national security threat". On Jan 3, 2020, Chairman Pai responded by saying he has frequently discussed his support for addressing 5G security issues upfront. He wrote about how "Last May, more than 140 representatives from 32 countries came together to develop the Prague Proposals, a consensus approach for protecting next-generation networks. As acknowledged in the Proposals, there are no universal solutions to security. Rather, '{t]he decision on the most optimal path forward when setting the proper measures to increase security should reflect unique social and legal frameworks, economy, privacy, technological self-sufficiency and other relevant factors important for each nation.'" Chairman Pai went on to provide answers to the questions Sen Wyden asked.
The Department of Justice withdrew the 1984 DOJ Non-Horizontal Merger Guidelines, and, together with the Federal Trade Commission, released new draft 2020 Vertical Merger Guidelines and seek public comment. The draft guidelines, open to comment for 30 days, describe how the federal antitrust agencies review vertical mergers to evaluate whether the mergers violate antitrust law. Vertical mergers combine two or more companies that operate at different levels in the same supply chain. The draft guidelines outline the agencies’ principal analytical techniques, practices, and enforcement policy for vertical mergers. The draft guidelines adopt the principles and analytical frameworks in the agencies’ Horizontal Merger Guidelines, including market definition, the analytic framework for evaluating entry considerations, the treatment of the acquisition of a failing firm or its assets, and the acquisition of a partial ownership interest. The draft guidelines describe the analytical and enforcement considerations that are specific to vertical mergers.
The draft guidelines:
- describe potential anticompetitive effects resulting from vertical mergers, which may include both unilateral and coordinated effects;
- identify foreclosure and raising rivals’ costs and access to competitively sensitive information as potential elements of antitrust harm under unilateral effects;
- describe an analytic framework for analyzing potential anticompetitive effects of foreclosure and raising rivals’ costs;
- discuss how the elimination of double marginalization may mitigate or completely neutralize the potential anticompetitive effects of vertical mergers;
- discuss cognizable merger efficiencies that are specific to vertical mergers;
- provide a number of examples to provide more clarity about the agencies’ analytical methods in evaluating vertical mergers.
The agencies will review and consider the public comments before issuing final Vertical Merger Guidelines. The agencies cooperated closely in preparing the draft guidelines, which reflect the agencies’ significant experience in analyzing vertical mergers. The guidelines are intended to assist the business community and antitrust practitioners by providing transparency about the agencies’ antitrust enforcement policy with respect to vertical mergers.
Almost six months after Facebook agreed to a $5 billion settlement of privacy violations, the issue is anything but settled. The deal with the Federal Trade Commission announced in July to settle allegations that Facebook broke its promises to protect users’ privacy is still under review by a federal judge, who has been weighing objections from opponents who believe the deal is inadequate. Judge Timothy Kelly of the US District Court for the District of Columbia has ordered Facebook and the government to file by Jan. 24 written responses to privacy advocacy groups critical of the settlement. The groups’ chief complaint is a provision releasing Facebook from liability for past missteps, including any unfair or deceptive actions the FTC was aware of as of June 2019. That provision, they say, could nullify long-held complaints about Facebook that aren’t addressed in the proposed settlement, including about its use of facial-recognition technology or its collection of personal health information.
Anger toward big technology companies has led to multiple antitrust investigations, calls for a new federal data privacy law and criticism of the companies’ political ad policies. Perhaps no issue about the tech companies, though, has united lawmakers in the Capitol like the decimation of local news. Lawmakers from both parties blame companies like Facebook and Google, which dominate the online ad industry. Senate Majority Leader Mitch McConnell (R-KY) gave a big boost to a bill that may provide some papers a lifeboat. The proposal would give news organizations an exemption from antitrust laws, allowing them to band together to negotiate with Google and Facebook over how their articles and photos are used online, and what payments the newspapers get from the tech companies. (The bill is backed by the News Media Alliance, a trade group that represents news organizations including The New York Times Company.) The proposal was sponsored by Representative Doug Collins (R-GA). It was written by Representative David Cicilline (D-RI). Senator John Kennedy (R-LA) sponsored an identical version in the Senate. Prominent co-sponsors joined, including Sens Cory Booker (D-NJ) and Amy Klobuchar (D-MN), and Rand Paul (R-KY).
Emergency Communications
Chairman Pai’s Response to Reps. Grijalva, Velazuez, and Gonzalez-Colon Re: Communications Restoration Efforts in Puerto Rico Following Hurricanes Irma and Maria
On May 7, 2019, Reps Raúl Grijalva (D-AZ), Nydia Velázquez (D-NY), and Jennifer González-Colón (D-PR) wrote to Federal Communications Commission Chairman Ajit Pai regarding communications restoration efforts in Puerto Rico following Hurricanes Irma and Maria. "It is no secret that the cost of deploying fiber or other forms of wireline and wireless broadband access to our nation's rural and remote communities is expensive, and we have an obligation to bridge the digital divide for all communities, regardless of where they may be located. The same should be said for our nation's territories like the US Virgin Islands and the Commonwealth of Puerto Rico," their letter began. They wrote, "While most federal grants are technology neutral, to be eligible for a number of broadband deployment grants a provider needs to be a common carrier, which is not always feasible in Puerto Rico and the Virgin Islands, even for those with local facilities. The Puerto Rico Telecommunications Regulatory Board is not authorizing certifications of any locally-based satellite providers as an eligible telecommunications carrier, therefore creating a de-facto prohibition on expanding the use of satellite technology." They concluded in their letter, "We therefore urge the Commission to work with the Commonwealth of Puerto Rico to ensure that carriers are either allowed to subcontract the services of satellite providers with local facilities as a redundant technology or require that schools in these remote areas where terrestrial and wireless coverage is simply not practical are serviced by other carrier(s)."
On Dec 31, 2019, Chairman Pai responded by describing the FCC's efforts to ensure the recovery and strengthening of Puerto Rico's networks. He described different funding available, saying "These funds are available on a technology neutral basis, including to satellite operators, that are willing to meet the statutory requirement that they offer voice service as an eligible telecommunications carrier. And though federal law gives state commissions, like the Puerto Rico Telecommunications Regulatory Board, the authority to designate eligible telecommunications carriers, Congress reserved authority for the Commission to do so when state commissions cannot—an authority that the Commission has exercised repeatedly when needed."
Google has struck partnerships with some of the country’s largest hospital systems and most-renowned health-care providers, many of them vast in scope and few of their details previously reported. In just a few years, the company has achieved the ability to view or analyze tens of millions of patient health records in at least three-quarters of US states. In certain instances, the deals allow Google to access personally identifiable health information without the knowledge of patients or doctors. The company can review complete health records, including names, dates of birth, medications and other ailments, according to people familiar with the deals. The prospect of tech giants’ amassing huge troves of health records has raised concerns among lawmakers, patients and doctors, who fear such intimate data could be used without individuals’ knowledge or permission, or in ways they might not anticipate.
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.
© Benton Institute for Broadband & Society 2019. Redistribution of this email publication — both internally and externally — is encouraged if it includes this message. For subscribe/unsubscribe info email: headlines AT benton DOT org
Kevin Taglang
Executive Editor, Communications-related Headlines
Benton Institute
for Broadband & Society
727 Chicago Avenue
Evanston, IL 60202
847-328-3049
headlines AT benton DOT org
Share this edition:
The Benton Institute for Broadband & Society All Rights Reserved © 2019