Thursday, December 20, 2018
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FCC Commissioner O'Rielly Gets Defensive
Broadband/Internet







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Platforms/Content


- Facebook Rebuked for Failing to Disclose Data-Sharing Deals | New York Times

- Public Knowledge Responds to NYT Report on Facebook Data Sharing | Public Knowledge

- FTC, Congress must take action in wake of latest Facebook privacy revelations | Consumer Reports





Kids and Media

Security


Emergency Communications

- Commissioner O'Rielly Statement on FCC Report to Congress on 9-1-1 Fees and Charges | Federal Communications Commission

Journalism
Analysis: Americans are scattered and divided over which source they most trust for news | Washington Post 
BuzzFeed Wins Defamation Lawsuit Filed by Executive Named in Trump Dossier | New York Times 
Jim Rutenberg, media columnist for The Times, discusses the tech he’s using | New York Times 
Government & Communications


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Broadband/Internet

Sen. Amy Klobuchar (D-MN), one of several Democratic lawmakers mulling a 2020 presidential bid, thinks Democrats could “run on” and even “win on” wonky-but-important talk about issues like rural broadband. Sen Klobuchar told The New Yorker that while the issue might not be on the radar for “most people in urban areas … a lot of parts of our rural countryside can’t even access cell-phone service, much less broadband.” But would that matter as a campaign issue in the age of Trump, who has not commented extensively on issues like broadband? Yes, says Sen Klobuchar, who adds that challengers “just have to meet him with facts” rather than going “down every rabbit hole with him.”
Rep. Ro Khanna (D-CA), who represents parts of Silicon Valley (and is not considering running in 2020), is taking a similar approach to tech jobs in rural America. Rep Khanna, who has taken his message on tech to rural communities in recent months, said that defining “American patriotism as future-oriented” is how Democrats can best counter President Trump. “We have to have an answer for folks about how their communities are going to have economic mobility and jobs in the future,” he said.

Telecom operators need to get their artificial intelligence (AI), SDN and cloud ducks in a row or risk becoming a "dumb pipe" for connectivity, according to a report by GlobalData. “Telecom operators are increasingly seeking to move beyond the dumb pipe of simple connectivity and diversify in the cloud, AI and SDN," said Laura Petrone, senior analyst for GlobalData. "This trajectory will bring them into direct competition with technology interlopers that are also actively targeting segments that telecoms operators might once have seen as their own.”

In Oct, Federal Communications Commissioner Michael O’Rielly accused municipal networks, including Chattanooga’s EPB Fiber Optics, of violating the First Amendment by limiting subscribers free speech. Journalists and organizations who know better were quick to correct him. In a Dec 13, 2018 blog post, he lashed out at his critics and tried to defend or explain his earlier comments, but once again missed the mark.
In his newest commentary, Commissioner O’Rielly dramatically describes local decisions to invest in broadband infrastructure as “flirting with a perverse form of socialism.” He goes on to state that publicly owned networks deter private entities from entering the market. He’s correct if we only consider the large, corporate Internet service providers (ISPs) that refuse to compete with anyone on order to preserve the characteristics monopolies created through concentration of power: shoddy customer service, unchecked rates, and lackluster Internet access. If we look at private ISPs more interested in serving the local community than in boosting share prices, however, we see some healthy competition. Contrary to what Commissioner O'Rielly claims, when local communities invest in infrastructure, it often encourages private invetment.

While research on the impact of broadband continues to increase, a broad understanding of what being digital ready entails is missing. This study—based on a 1,214 nonrepresentative household survey weighted by income, age, and educational attainment—developed a digital readiness index (DRI) score based on three related but distinct dimensions: device & internet access (DIA), digital resourcefulness and utilization (DRU), and internet benefits and impact (IBI). All scores calculated were normalized to a range from 0 to 10 for easier comprehension and comparison, where a higher score indicates a higher level for that particular digital readiness dimension. Some key findings:
- Regarding device & internet access, nonmetro respondents relied more on their smartphones and mobile data to connect to the internet compared to their metro counterparts. In the end, nonmetro did have a lower DIA score compared to metropolitan respondents.
- Regarding the digital readiness index score, metro households had a higher score (5.2) compared to nonmetro (4.5), leaving ample room for improvement given 10 is the highest score. More interestingly, when it comes to digital readiness a metro-nonmetro divide was not as large and surpassed by income and occupation differences.
- Of the three dimensions analyzed, internet benefits and impact had the lowest score. In other words, the impact of the internet on households—as measured by this study—is lagging. This implies that focusing on improving digital literacy and skills is critical to ensure the benefits of internet continue to accrue to households.

Income is the largest determinant of whether or not someone has access. Only 67 percent of households with less than $25,000 in income have access to a computer, and only 51.7 percent of them have access to internet. In comparison, households making between $50,000 and $99,999 had 93.9 percent of households with a computer and 86.2 percent with internet access. Income can determine whether a community needs to rely on the library for internet access. Rural communities with more low-income people have less home internet access. Suburban residents with higher median incomes use the library less for that reason. But why are city patrons using library computers at such a higher rate? It might be because of rising income inequality in cities. Wealthier people don’t need to use many of the digital and traditional services a library provides, because they have the money to access them on their own. Lower-income patrons, however, still rely on the library for both.
[This piece was published November 21, 2018]
Gov Northam (D-VA) Announces Major Investment to Accelerate Virginia’s Progress Towards Universal Broadband Access

Gov Ralph Northam (D-VA) announced his proposed budget will feature major investments in Virginia in support of broadband infrastructure, the first installment of a historic commitment to expanding access to all unserved Virginians. The governor’s proposal would increase funding for the Virginia Telecommunications Initiative (VATI), a program that incentivizes internet service providers to expand their service to Virginians that are unserved, to $50 million in Fiscal Year 2020. The funding would be a significant increase to the $4 million already appropriated on an annual basis. This state funding will be matched by local, federal, and private funds, helping to connect tens of thousands more Virginians. Additional investments will support the technical expertise needed to assist local governments in developing detailed plans to connect all their citizens. Gov Northam envisions these commitments as the first installments of a multi-year investment totaling $250 million over the coming years, providing connection speeds significantly greater than 10 megabits (10,000,000 bits) per second. For comparison, standard dial-up speeds are 56 kilobits (56,000 bits) per second.

The Trump administration slapped new sanctions on 18 Russian intelligence agents for a variety of activities, including interfering in the US presidential election, the attempted assassination of a former spy in Britain, and hacking international agencies that combat chemical weapons and doping. The latest round of sanctions bring the total of Russian individuals and entities the Trump administration has sanctioned to 272. Nine officers for Russia’s Main Intelligence Director (GRU) were sanctioned for playing a role in undermining the election. The Treasury Department’s Office of Foreign Assets Control said they were engaged in cyberactivities that targeted election systems and political parties. It said they released stolen documents related to the election, using online personas, and promoted their spread on social media accounts operated by the GRU. Treasury also sanctioned the chief accountant for a Russian company that took part in the information war by producing English language news sites such as USA Really, which played up divisive political issues and attempted to stage a political rally in the United States.

The attorney general for the District of Columbia filed a lawsuit against Facebook for allowing Cambridge Analytica, a political consultancy, to gain access to the names, "likes" and other personal data about tens of millions of the social site's users without their permission. The lawsuit filed by Karl Racine marks the first major effort by regulators in the US to penalize the tech giant for its entanglement with the firm. It could presage even tougher fines and other punishments still to come for Facebook as additional state and federal investigations continue. “Facebook failed to protect the privacy of its users and deceived them about who had access to their data and how it was used,” Racine said. "Today’s lawsuit is about making Facebook live up to its promise to protect its users’ privacy.”
Trump 2020 campaign used a shell company to pay ad buyers at the center of alleged illegal coordination scheme with NRA

The Trump campaign funneled money to ad buyers alleged to have facilitated illegal coordination between the campaign and the NRA by routing funds through a secretive LLC that appears to be little more than a shell company. While the Trump campaign stopped reporting payments to ad buyers alleged to have facilitated illegal coordination between the campaign and the NRA after the 2016 election cycle, Trump’s 2020 campaign has continued to deploy the same individuals working for the firms at the center of the controversy through payments to Harris Sikes Media LLC — a low-profile, limited-liability company. Facing the illegal coordination allegations are National Media, Red Eagle Media Group and American Media & Advocacy Group (AMAG), closely tied consultancies that share staff, resources and adjacent storefronts in Alexandria (VA).

This was the year when Big Tech companies were humbled, their reputations tarnished, and their share prices clobbered by a tidal wave of political outrage over misinformation, censorship, and data abuse. This public flogging may go too far. The risk grows of interventions that sound satisfying but don’t fix, and in fact may worsen, the underlying problem in this arena: an absence of competition. If there is a case for government intervention, then, this is it: more muscular antitrust oversight. Antitrust has risks of its own: denying companies synergies they might achieve if free to acquire or exclude competitors. Nor are trust busters free of their own political agendas. Yet these risks seem much less consequential than those that come from regulating content or privacy, and worth taking for the sake of more competition, the most effective antidote to monopolists’ abuses.
The data-sharing at the heart of Facebook’s latest scandal isn’t an anomaly — it’s how Facebook does business

Facebook's business model has always been simple: acquire as much personal information from users as possible, then find a way to make money off of it. For more than a decade, it proved to be a remarkably successful strategy, bringing to the social platform 2 billion monthly users to friend, feud and play Farmville. But as the year comes to a close, Facebook is facing a pair of major lawsuits in the US and reeling from a string of public relations disasters. The company's stock has lost over 25% of its value since January and took another 7% hit on Dec 19 after a report that it shared the power to read and delete users' private messages with companies such as Netflix and Spotify. Surprisingly, this fall from grace hasn’t been defined by deviation from the practices that made it one of the most valuable companies in the world. The scandals that have pummeled the company in 2018 have largely kept with the fundamentals of Facebook's business model.

A coalition of 22 consumer and public health advocacy groups led by Campaign for a Commercial-Free Childhood (CCFC) and Center for Digital Democracy (CDD) called on the Federal Trade Commission to investigate and sanction Google for the deceptive marketing of apps for young children. Google represents that the apps in the “Family” section of the Google Play Store are safe for children, but the apps often violate federal children’s privacy law, expose children to inappropriate content, and disregard Google’s own policies by manipulating children into watching ads and making in-app purchases. Lawmakers echoed the call for FTC action. “We’re repeatedly confronted with examples of tech companies that are just not doing enough to protect consumer privacy – and I’m particularly concerned about what this failure means for our children,” said Sen Tom Udall (D-NM). “When real-world products are dangerous or violate the law, we expect retailers to pull them off the shelves. Google’s refusal to take responsibility for privacy issues in their Play Store allows for app developers to violate COPPA, all while Google cashes in on our children’s activity. It is past time for the Federal Trade Commission to crack down to protect children’s privacy.”

The Federal Communications Commission published its tenth annual report to Congress on the collection and distribution of 911 fees by states. The report finds that in calendar year 2017, states and territories collected more than $2.9 billion in 911 fees. But almost $285 million of that funding—approximately 9.7%—was diverted for uses other than 911. The FCC’s report identifies six states and one territory as diverting 911 fees for other uses last year: Montana, New Jersey, New York, Nevada, Rhode Island, West Virginia, and the US Virgin Islands.
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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