Daily Digest 1/14/2020 (T-Mobile/Sprint faces another setback)

Benton Institute for Broadband & Society
Table of Contents

Universal Service

Chairman Response to Members of Congress Regarding Cap on Universal Service Fund  |  Read below  |  FCC Chairman Ajit Pai  |  Federal Communications Commission
Chairman Pai Corresponds with Lawmakers on Alternative Connect America Model Support for Rural Carriers to Deploy Broadband  |  Federal Communications Commission
Chairman Pai's Response to Rep. González-Colón Regarding National Verifier  |  Read below  |  FCC Chairman Ajit Pai  |  Federal Communications Commission

Broadband

Washington And Oregon Fine CenturyLink For Completely Bogus Broadband Fees  |  Read below  |  Karl Bode  |  TechDirt
Remarks Of FCC Chairman Ajit Pai on the Digital Divide At The Hawaii International Conference On Science Systems  |  Read below  |  FCC Chairman Ajit Pai  |  Speech  |  Federal Communications Commission
Can the Digital Divide Finally be Bridged?  |  Read below  |  Shrihari Pandit  |  Op-Ed  |  Route Fifty
Rural Broadband Getting State and Federal Push  |  Read below  |  Eric Bohl  |  Op-Ed  |  Rolla Daily News

Wireless

T-Mobile/Sprint deal faces another setback  |  Read below  |  Monica Alleven  |  Fierce
The 5G Revolution That Isn't  |  Outline, The

Platforms

Placing a visible hand on the digital revolution  |  Read below  |  Tom Wheeler  |  Analysis  |  Brookings Institution
Tech’s newest leaders shrug off DC  |  Politico
Analysis: Instagram faces backlash for removing posts supporting slain Iranian commander Qasem Soleimani  |  Washington Post
Buckle Up for Another Facebook Election  |  New York Times
Activists get frustrated with Facebook when political speech gets removed from platform  |  Vox

Ownership

Concurring Statement of Commissioner Christine S. Wilson Concerning the Publication of FTC-DOJ Draft Vertical Merger Guidelines for Public Comment  |  Read below  |  FTC Commissioner Christine Wilson  |  Press Release  |  Federal Trade Commission
Statement of Commissioner Rebecca Kelly Slaughter on the FTC-DOJ Draft Vertical Merger Guidelines  |  Read below  |  FTC Commissioner Rebecca Kelly Slaughter  |  Press Release  |  Federal Trade Commission
Statement of Commissioner Rohit Chopra Regarding the Request for Comment on Vertical Merger Guidelines  |  Read below  |  FTC Commissioner Rohit Chopra  |  Press Release  |  Federal Trade Commission

Security/Privacy

Attorney General William Barr Asks Apple to Unlock iPhones of Pensacola Gunman  |  Read below  |  New York Times
Microsoft CEO says encryption backdoors are a ‘terrible idea’, but won't defend Apple in Pensacola case  |  Vox
Op-ed: What we've learned from California's Consumer Privacy Act so far  |  Hill, The
Stuart Brotman: Why the new robocall law is important for future privacy legislation  |  Hill, The
Exploit that gives remote access affects ~200 million cable modems  |  Ars Technica

Elections and Media

Doctored images have become a fact of life for political campaigns. When they’re disproved, believers ‘just don’t care.’  |  Washington Post

Emergency Communications

FCC Deactivates Disaster Reporting for Puerto Rico Earthquakes  |  Federal Communications Commission
Public TV Stations Push FCC to Mandate FirstNet Datacasting Interoperability  |  Broadcasting&Cable

Health

Chairman Pai's Response to Sens Baldwin, Sullivan, Rep. DeSaulnier Re: the National Suicide Prevention Hotline Improvement Act  |  Federal Communications Commission

Journalism

Rupert Murdoch launches US version of The Sun tabloid  |  Hill, The

Lobbying

Former House Intelligence Committee Chairman Mike Rogers (R-MI) to Serve As Chairman of New Advocacy Organization 5G Action Now  |  5G Action Now

Policymakers

FCC Chairman Pai Appoints Paul Jackson to Lead Congressional Affairs Team  |  Read below  |  Press Release  |  Federal Communications Commission

Stories From Abroad

Internet research firm Top10VPN: Government-led internet shutdowns cost the global economy $8 billion in 2019  |  CNBC
Using Huawei in UK 5G networks would be 'madness', US says  |  Guardian, The
Brazil 5G auction delay dents country’s tech ambitions  |  Financial Times
France’s minister of economy and finance op-ed: Let’s Make a Deal on Tech Taxes  |  Wall Street Journal
Today's Top Stories

Universal Service

Chairman Response to Members of Congress Regarding Cap on Universal Service Fund

FCC Chairman Ajit Pai  |  Federal Communications Commission

On Aug 22, 2019, Sen Jon Tester (D-MT) wrote to Federal Communications Commission Chairman Ajit Pai expressing concern about the FCC's proposal to establish a cap on the overall Universal Service Fund (USF) budget and combine the E-rate and Rural Health Care programs under a single sub-cap. On Sept 25, 2019, a dozen Members of Congress wrote to Chairman Pai to also express concern about a USF cap: "If enacted, an overall cap on the USF programs will undermine the ability of low-income Asian American and Pacific Islander families and households to enroll in Lifeline and attain a higher standard of living. ...we urge the Commission to signal its commitment to universal service by rejecting the proposed cap." 

On Jan 3, 2020, Chairman Pai responded to the two letters by explaining the proposal. He said the FCC initiated the proceeding "mindful of our obligation to safeguard the USF funds ultimately paid by consumers, including Asian-American and Pacific Islander families and households, and to ensure that these important programs are funded appropriately." He continued, "Each of the USF programs is currently capped or is operating under a targeted budget. And the Commission believes that an overall cap could help limit the overall contribution burden (which falls on every consumer with a phone bill) and will provide regulatory and financial certainty to both recipients of and contributors to the Fund." 

Chairman Pai's Response to Rep. González-Colón Regarding National Verifier

FCC Chairman Ajit Pai  |  Federal Communications Commission

On Oct 31, 2019, Rep Jennifer González-Colón (D-PR) wrote to Federal Communications Commission Chairman Ajit Pai about how the Puerto Rico Telecommunications Bureau (PRTB) filed a waiver request to suspend the requirement that carriers use the National Verifier eligibility determination system for the Lifeline communication services until the new verification program proves operations. The FCC denied the waiver request, and Rep González-Colón, while ultimately supporting the purpose of the National Verifier, urged for reconsideration from the FCC and approve the waiver request. 

On Jan 3, 2020, Chairman Pai responded by saying that while the FCC did not receive a formal waiver request regarding the National Verifier launch in Puerto Rico, FCC staff worked closely with members of the PRTB and carriers in the territory to understand their concerns and answer their questions. Chairman Pai also described how FCC staff has made substantial progress on the issues raised by the PRTB and that "the National Verifier has improved automated eligibility verification for the Lifeline program in Puerto Rico." Chairman Pai concluded by saying that "During the soft launch, FCC staff will continue to closely monitor progress on these issues before announcing the date for the hard launch of the National Verifier in Puerto Rico."

Broadband

Washington And Oregon Fine CenturyLink For Completely Bogus Broadband Fees

Karl Bode  |  TechDirt

For decades, broadband providers have abused the lack of meaningful competition in the telecom market by not only refusing to shore up historically awful customer service, but by raising rates hand over fist. This usually involves leaving the advertised price largely the same, but pummeling customers with all manner of misleading fees and surcharges that drive up the actual price you'll be paying each month. And by and large regulators from both major political parties have been perfectly okay with this practice, despite it effectively being false advertising. CenturyLink (combined by the merger of Qwest, CenturyTel and Embarq) has been exceptionally talented when it comes to such fees. 

With the federal government now largely comatose on such issues, states have been forced to step up to the plate and try to fill the void. As a result, Centurylink was forced to settle a lawsuit by Oregon's Attorney General requiring it cease the practice and shell out $4 million to impacted consumers. That settlement comes several weeks after a similar settlement with Washington State's AG to the tune of $6.1 million.

Remarks Of FCC Chairman Ajit Pai on the Digital Divide At The Hawaii International Conference On Science Systems

FCC Chairman Ajit Pai  |  Speech  |  Federal Communications Commission

The Internet has become an indispensable platform for innovation, job creation, and free expression. It is critical to our quality of life and our global competitiveness. To take advantage of the major innovations that will be introduced in the coming years, Americans will need to be connected. And that, of course, only serves to underscore why the Federal Communications Commission’s top priority must be to expand the deployment of high-speed broadband networks to all American. I’m pleased to report that our strategy of encouraging investment and innovation is working. After falling in 2015 and 2016, broadband investment in the United States increased in 2017 and 2018. And by almost every meaningful metric, America’s broadband networks have been expanding and improving. Since December 2017, the average fixed broadband download speed in the United States has increased by about 70%.

When we talk about the digital revolution, no area has greater potential for transformative change in the coming years than healthcare. At the FCC, we believe that broadband-enabled innovation represents a sea change in healthcare delivery—one that will broadly impact the field of healthcare. We want to encourage that innovation, which means ensuring that broadband is as ubiquitous as possible. We don’t want connectivity gaps that could hold back digital medicine. 

Can the Digital Divide Finally be Bridged?

Shrihari Pandit  |  Op-Ed  |  Route Fifty

Frustrated with limited deployments, high prices and slow speeds, some municipalities have decided to take matters into their own hands, installing community networks through muni-fiber. Some cities are installing a conduit system with dark fiber, which gives them the choice to lease to broadband providers or switch to a municipal network in the future. A low-cost, low-risk option, the system allows ISPs to place and maintain their own fiber-optic cables. The city manages the asset leasing and creates an open platform for local provider competition. Allowing municipalities to take control of their networks on an evenhanded, open basis can create an environment that fosters adoption and innovation. However, there has been significant legislative resistance from big telecommunications and cable lobbyists at the state level to restrict municipal broadband projects. As a result, 19 states have enacted legislation that blocks or restricts municipalities from providing telecommunications services. So, what is the most logical next step for local leaders looking to attract private providers?  Adopting strategies to facilitate increased installation of fiber. Wireless technologies can be best understood as extensions of fiber networks, not as replacements to wired technologies. Often little known by a general audience, all land-based wireless systems used by homes and business eventually connect to a physical wire. Currently, private providers run into huge challenges installing fiber because the rules, procedures and policies differ so significantly from market to market.

[Shrihari Pandit is the President and CEO of Stealth Communications, the New York City-based internet service provider he co-founded in 1995]

Rural Broadband Getting State and Federal Push

Eric Bohl  |  Op-Ed  |  Rolla Daily News

To be a part of the modern world, high-speed internet access is no longer optional. We’ve been saying this since at least the 1990s, yet Missouri continues to lag behind other states. Somehow we have entered the third decade of the 2000s with more than 1.2 million Missourians still lacking access to broadband internet. This is more than any other state except California and Texas. Missouri Farm Bureau made broadband access a top priority the past two state legislative sessions. We successfully advocated for an Office of Broadband Development, which was established within the Department of Economic Development in 2018. In 2020, we need to continue our investment by directing more money to this fund. The General Assembly should also extend the grant program’s authorization beyond its current August 2021 sunset. There is a lot more work to do before every rural Missourian has access to broadband.

Federal Communications Commission Chairman Ajit Pai also recently named Missouri Farm Bureau President Blake Hurst to a working group as part of the FCC’s new Precision Agriculture Connectivity Task Force. This group of people with real-world experience in precision agriculture will advise the US Department of Agriculture and the FCC about the needs of tomorrow’s farmers.  These federal and state efforts are also being combined with private industry. If all of these groups pull in the same direction, we can close the digital divide that currently exists between rural and urban citizens. Of course, as new technologies come online, we will need to keep fighting to ensure rural areas are not left behind. In the 2020s, every American deserves the opportunity to access the modern economy and engage in modern culture. Through consistent effort, Missouri can move to the head of the pack and provide broadband to all corners of our state.

[Eric Bohl is the Director of Public Affairs and Advocacy for Missouri Farm Bureau]

Wireless

T-Mobile/Sprint deal faces another setback

Monica Alleven  |  Fierce

T-Mobile’s attempt to buy Sprint and close the deal faced another setback when US District Judge Timothy Kelly extended his Tunney Act review of the Department of Justice settlement into mid-February. He said he would consider friend-of-the-court briefs on the proposed transaction. The briefs must be limited to 20 pages and filed by January 24, with the parties responding by February 7. “We had initially expected this routine review to end in mid-November. Now it might not conclude until after Judge Victor Marrero’s decision in the State AG case, thereby delaying T-Mobile’s ability to close the deal,” wrote LightShed Partners analysts Walter Piecyk and Joe Galone. “This generates additional uncertainty for investors and could further widen the ratio between T-Mobile and Sprint’s stock.” Starting a new comment period for the Tunney Act review is not a good sign, but it’s still not the worst-case scenario, according to the LightShed analysts, who think it’s unlikely Judge Kelly will conduct a full evidentiary hearing. “T-Mobile likely hopes that the Judge’s willingness to listen to those contesting the deal will not extend into more testimony in yet another court,” the analysts wrote. “That could end up preventing T-Mobile from quickly closing the deal if they were to achieve a favorable ruling in the State AG case. More delays could enable the States time to appeal.”

Platforms

Placing a visible hand on the digital revolution

Tom Wheeler  |  Analysis  |  Brookings Institution

As we enter the third decade of the 21st century—the digital century—it is time for the public interest to reassert itself. Thus far, the digital entrepreneurs have been making the rules about the digital economy. Early in this decade, We the People must reassert a visible hand on the tiller of digital activity. Will public policy intervene to protect personal privacy? Can our leaders act to preserve the idea of a competition-based economy? And while we catch up to decades of ignoring digital policy challenges, will we also look ahead to establish public interest expectations of the new developments such as artificial intelligence that digital technology opens?

In the 18th century, Adam Smith wrote of the “invisible hand” that governed markets. In the 19th and 20th centuries, the excesses of industrial capitalism resulted in the regulatory imposition of a “visible hand” acting in the public interest. The subsequent combination of capitalism and regulatory guardrails had the laudable effect of allowing the industrial economy to soar while protecting consumers and competition. At the beginning of the third decade of the digital century, it is time to introduce the visible hand of regulatory oversight into the information economy.

Ownership

Concurring Statement of Commissioner Christine S. Wilson Concerning the Publication of FTC-DOJ Draft Vertical Merger Guidelines for Public Comment

FTC Commissioner Christine Wilson  |  Press Release  |  Federal Trade Commission

The Federal Trade Commission – with the Department of Justice – issues draft Vertical Merger Guidelines for public comment. I concur in this action, which allows the Agencies to gather and consider input from the public before the Guidelines are finalized. As a more general matter, I also concur with the decision to update and replace the outdated 1984 Non-Horizontal Merger Guidelines. Indeed, during the Commission’s recently-concluded Hearings on Competition and Consumer Protection in the 21st Century, and particularly during the November 1, 2018 session on vertical mergers, commentators almost unanimously called upon the Commission to issue modern guidance that explains how we assess vertical mergers today. Now, just over a year after that Hearing, the Agencies are responding with a timely and comprehensive draft.

Statement of Commissioner Rebecca Kelly Slaughter on the FTC-DOJ Draft Vertical Merger Guidelines

FTC Commissioner Rebecca Kelly Slaughter  |  Press Release  |  Federal Trade Commission

I cannot join my colleagues in voting to release these proposed Vertical Merger Guidelines for public comment and instead abstain. I come to this decision with some reluctance because I believe the 1984 Non-Horizontal Guidelines should be rescinded and rewritten and because I recognize the utility of public comments. I do not object to the public having an opportunity to comment on these proposed Guidelines, however my substantive concerns about the proposal in its current form rise to a level where I am unable to provide an endorsement of it. I have a number of concerns with the proposed Guidelines. My two primary objections are: (1) the effective safe harbor for firms with less than 20 percent market share, and (2) the departure from Section 7 of the Clayton Act’s mandate to stop anticompetitive mergers in their incipiency. I am also concerned that certain issues lack sufficient emphasis.

Statement of Commissioner Rohit Chopra Regarding the Request for Comment on Vertical Merger Guidelines

FTC Commissioner Rohit Chopra  |  Press Release  |  Federal Trade Commission

The 1984 Non-Horizontal Merger Guidelines should be rescinded, as they represent an antiquated, narrow, and overly permissive mode of thinking that is not reflective of today’s economy or the current approach to enforcement. The US economy is far different than it was forty years ago. Increasing concentration, declining new firm formation, and other market trends necessitate a modernization of vertical merger review. The draft guidelines miss the mark. They are not supported by an analysis of past enforcement decisions, perpetuate an overdependence on theoretical models, and do not reflect all of the ways that competition can be harmed. Any new guidelines must establish a comprehensive framework for assessing the modern threats to competition posed by prospective vertical mergers.

Security

Attorney General William Barr Asks Apple to Unlock iPhones of Pensacola Gunman

  |  New York Times

Attorney General William Barr declared that a deadly shooting in Dec at a naval air station in Pensacola (FL) was an act of terrorism, and he asked Apple in an unusually high-profile request to provide access to two phones used by the gunman. AG Barr’s appeal was an escalation of an ongoing fight between the Justice Department and Apple pitting personal privacy against public safety. “This situation perfectly illustrates why it is critical that the public be able to get access to digital evidence,” Barr said, calling on Apple and other technology companies to find a solution and complaining that Apple has provided no “substantive assistance.” Apple has given investigators materials from the iCloud account of the gunman, Second Lt. Mohammed Saeed Alshamrani, a member of the Saudi air force training with the American military, who killed three sailors and wounded eight others on Dec 6. But the company has refused to help the FBI open the phones themselves, which would undermine its claims that its phones are secure. Justice Department officials said that they need access to Alshamrani’s phones to see messages from encrypted apps like Signal or WhatsApp to determine whether he had discussed his plans with others at the base and whether he was acting alone or with help.

Policymakers

FCC Chairman Pai Appoints Paul Jackson to Lead Congressional Affairs Team

Press Release  |  Federal Communications Commission

Federal Communications Commission Chairman Ajit Pai announced his intent to appoint Paul A. Jackson as director of the FCC’s Office of Legislative Affairs. Jackson will replace Tim Strachan, who will continue his work at the FCC in the Office of General Counsel.

Jackson has worked in Congress and the private sector – and has twice served at the FCC, including returning to the agency in 2019 as associate bureau chief of the Media Bureau. Prior to joining the agency, he worked at the US House Subcommittee on Digital Commerce and Consumer Protection, and he previously worked in the US Senate. Jackson first joined the FCC in 1997 as special assistant to then-Commissioner Michael Powell. Next, he served as deputy director of the Office of Legislative Affairs from 2001 to 2004, including a period as acting director of the office. Jackson then held senior public policy and strategic advocacy positions, including as director of government relations with News Corporation and as a principal at a government relations and consulting firm. He earned his bachelor’s degree from Georgetown University.  Chairman Pai also thanked Tim Strachan for his excellent work as director of the Office of Legislative Affairs over the last three years. 

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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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