Daily Digest 12/4/2018 (All Eyes On Pai)

Benton Foundation
Table of Contents

Internet/Broadband

How the online world reflects inequality  |  Read below  |  Scott Rosenberg  |  Axios
Wealth is driving how people get the internet  |  Read below  |  Axios
Electricity 2.0: Small cities rush to innovate on Wi-Fi  |  Read below  |  Kim Hart  |  Axios
Community Reinvestment Act Consideration for Rural Broadband Development Initiatives  |  Department of the Treasury
Rural Broadband Financing and Development  |  Department of the Treasury
US Broadband Availability Mi-Year 2017  |  Read below  |  Patrick Brogan  |  Analysis  |  USTelecom
Broadband-Only Homes Log Record Gains In Q3 of 2018  |  S&P Global
AT&T makes it more expensive to cancel DirecTV or Internet service  |  Ars Technica

Education

The "homework gap": 12 million schoolchildren lack internet  |  Read below  |  Kim Hart  |  Axios

Journalism

Where the death of local news hits hardest  |  Read below  |  Sara Fischer  |  Axios
Americans Still Prefer Watching to Reading the News – and Mostly Still Through Television  |  Pew Research Center
Who’s Reading That News Story? Startup Will Help Marketers Find Out  |  Wall Street Journal

Wireless/Spectrum

The Educational Broadband Service and Why it Matters for Schoolchildren and Unserved Communities  |  Read below  |  Lee Solonche  |  Op-Ed  |  Benton Foundation
Samsung, Verizon will partner on 5G smartphone in first half of 2019  |  C|Net
Apple Will Wait Until at Least 2020 to Release a 5G iPhone  |  Bloomberg

Telecom

FCC and Senate teaming up to take down robocall scams  |  Read below  |  Peter Zampa  |  WJCT

Broadcasting

Nexstar-Tribune Deal Proposal Already Drawing Consolidation Foe Pushback  |  Broadcasting&Cable

Privacy/Security

Analysis: Senators call for data breach penalties, tougher privacy laws after Marriott hack  |  Washington Post
Editorial: The Marriott data breach is a reminder that privacy concerns extend beyond tech  |  Washington Post
Quora says hackers stole up to 100 million users’ data  |  Vox
US, China say they're open to Qualcomm buying NXP. Qualcomm says: Too late  |  Bloomberg
Oath Agrees to $5 Million Settlement Over Children’s Privacy Online  |  New York Times

Content

Apple's Tim Cook to white supremacists: ‘You have no place on our platforms’  |  Vox
A Q&A with the Atlantic's Franklin Foer: Facebook and Google are ‘the enemies of independent thought’  |  Vox
Tumblr will ban all adult content on December 17th  |  Vox
AT&T is celebrating the 25th anniversary of its “You Will” campaign and by thinking once again about what the future might hold  |  Fast Company

Open Government

“What is the FCC hiding?” Chairman Pai still won’t release net neutrality server logs  |  Read below  |  Jon Brodkin  |  Ars Technica
FCC Inspector General Report on Sinclair-Tribune Merger Interactions Disclosure  |  Read below  |  Sharon Diskin  |  Public Notice  |  Federal Communications Commission

Stories from Abroad

The high price of free Facebook in the Philippines  |  Read below  |  Axios
Twitter’s Caste Problem: Dalits and other Indian minorities are regularly harassed on Twitter  |  New York Times
No News Is Bad News for Hungary: The autocrat Viktor Orban has taken control of much of the country’s media.  |  New York Times

Company News

Coding together at the same computer, Jeff Dean and Sanjay Ghemawat changed the course of Google—and the Internet  |  New Yorker
Apple launches online store for active military and veterans with discounted pricing  |  USA Today
Today's Top Stories

Broadband/Internet

How the online world reflects inequality

Scott Rosenberg  |  Axios

A raft of new evidence shows the rise of the internet itself may have boosted inequality, and that how people use internet access may be just as — or more — important than the access itself. Educated users with high incomes derive the most benefit from internet use, a 2016 study in Europe showed. The World Bank issued a 2014 report warning that providing internet access on its own would only deepen inequality within and among countries unless governments ensured competitive markets and provided better education.

Whether closing the digital divide further widens the wealth gap depends on a host of complex factors, according to researchers. Country-by-country comparisons show the pattern unfolds differently depending on the regulatory framework, labor market policies, education policies and more, says Johannes Bauer, a professor of media and information at Michigan State University. On a global basis, the impact of tech appears to help level the field. Within wealthier countries, however, more tech often correlates with deepening inequality. The lesson may be to view the fight for access not as an end in itself but rather as one element in a broader campaign to level playing fields. Mark Warschauer, professor of education at UC-Irvine, argues that information technology amplifies the power of "haves" and weakens the under-educated, and the latter can only compete if they're able to use digital tools to develop skills that will help them get better jobs. "Access is not a sufficient condition, but it is a necessary one" for reducing inequality, Warschauer says.

Wealth is driving how people get the internet

  |  Axios

An Axios/SurveyMonkey poll reveals that income strongly affects how Americans access the internet, and the divide cuts across geography. In both urban and rural areas, exactly half of the lower income population reported having broadband internet at home — the lowest percentage of any group.
Our research also found that income was a strong factor in determining why a person might rely primarily on a smartphone for internet access. Members of families making less than $50,000 per year were more likely than higher-income respondents to say they use a smartphone because they didn't own a computer or because it was cheaper.

US Broadband Availability Mi-Year 2017

Patrick Brogan  |  Analysis  |  USTelecom

U.S. broadband providers continue to deploy and upgrade networks to bring consumers across the nation ever-faster service and more competitive choice, according to a new USTelecom and CensusNBM analysis of Federal Communications Commission (FCC) broadband availability data for mid-year 2017. This research demonstrates the real economic impact of broadband capital investment dollars: more and faster broadband for American consumers and businesses. According to the latest USTelecom analysis, wireline, wireless, and cable broadband providers invested $76 billion in 2017 and more than $1.6 trillion since 1996. The broadband availability data indicate that deployment is progressing. In the 18 months from the end of 2015 to mid-2017, fiber deployment grew from 21 percent to 29 percent of homes and competitive availability of wired broadband at 25 megabits per second (mbps) download and 3 mbps upload increased from 31 percent to 55 percent. During the same period, the difference between non-rural and rural deployment of fixed broadband at 10 mbps download and 1 mbps upload narrowed from 20 percent to 14 percent. By mid-2017, broadband at 100 mbps download was available to 89 percent of Americans.

Electricity 2.0: Small cities rush to innovate on Wi-Fi

Kim Hart  |  Axios

Some less-populated areas may technically have internet, but it's slower satellite, or DSL service delivered over old copper phone lines. So some towns have taken matters into their own hands, experimenting with novel solutions to connect unserved residents or give them new options to existing services:

  • In Wilson (NC), the community-owned Greenlight fiber network serves residents and provides free Wi-Fi downtown and to schools and libraries. (A state law now bans cities from operating their own ISPs.)

  • In Fort Collins (CO) the voters passed a ballot initiative to allow the city to build its own high-speed network. Fort Collins expects to pay off the $150 million it raised through bonds and debt in 14 years.

  • In San Francisco (CA), the city has asked for proposals to build a city owned and operated ISP that would compete with Comcast and AT&T.

  • In Boston (MA), the Boston Housing Authority has partnered with Starry, a 5G company, to provide free and low-cost service to public and affordable housing residents.

  • In MI's rural upper peninsula, local provider Packerland Broadband partnered with Microsoft via its initiative to use vacant TV frequencies and a mix of other technologies to deliver service.

The "homework gap": 12 million schoolchildren lack internet

Kim Hart  |  Axios

The "homework gap" affects 12 million U.S. school-age kids. By the numbers:

  • 15% of households with school-age children don't have a high-speed connection at home. That number is higher among low-income households, one-third of which lack broadband access.
  • 35% of teens say they at least sometimes rely on their cellphone to finish their homework. That number creeps up to 45% for teens living in households that earn less than $30,000 a year.
  • 12% of teens say they at least sometimes use public Wi-Fi to complete homework assignments because they don't have a connection at home.

Federal Communications Commissioner Jessica Rosenworcel calls the homework gap the "cruelest part of the digital divide." "It's the most important issue of digital equality we face. It's not about indulgent surfing online, it's about teaching students how to use resources online to supplement how they find information and understand the world. We're going to harm their ability to perform jobs, the majority of which now require digital skills." She has proposed using excess funds from spectrum auctions to fund initiatives to narrow the gap, like providing library loans of Wi-Fi hotspots.

Journalism

Where the death of local news hits hardest

Sara Fischer  |  Axios

High-speed broadband and mobile internet have created more opportunities to access free news and information than ever before. But they have also made it harder for quality news and information outlets, particularly ones in rural areas, to survive. Tech has disrupted the local media business model and pushed more journalism behind paywalls — and there's no end in sight. Experts worry that the deployment of 5G over the next few years will worsen the digital divide and have a lasting impact on how rural communities will be able to access quality news and information. National cable and broadcast networks that reach rural America are pushing resources into streaming channels as linear television revenues decline. But a lack of high-speed broadband in rural America will make it more difficult for some communities to access those streaming channels as more traditional channels are pulled off the air due to economic pressures.

Spectrum/Wireless

The Educational Broadband Service and Why it Matters for Schoolchildren and Unserved Communities

Lee Solonche  |  Op-Ed  |  Benton Foundation

The lack of affordable broadband access in the US has resulted in large-scale educational inequities especially in rural areas where 31 percent of Americans have no choice of broadband providers. For many years, Educational Broadband Service (EBS) licensees have been dedicated to helping solve these inequities, but a proceeding at the Federal Communications Commission is putting these services at risk. EBS licensees are accredited educational institutions (or nonprofits focused on serving the needs of accredited educational institutions). For the last 50 years, EBS licensees have operated transmission facilities on the only spectrum reserved for educational use, the 2.5 GHz band. Unfortunately, in 1995 the FCC stopped issuing new EBS licenses, leaving about half of the geographic areas of the country, primarily in rural areas, without access to this 2.5GHz spectrum. In these rural areas, EBS remains an untapped resource that could make a significant difference in ensuring that those without broadband aren’t left behind.

[Lee Solonche is the Executive Director of the National EBS Association (NEBSA), the professional association for those institutions who hold EBS (formerly ITFS) licenses.]

Telecom

FCC and Senate teaming up to take down robocall scams

Peter Zampa  |  WJCT

"Robocalls represent the biggest category of complaint that we get from consumers," said Federal Communications Commission Chairman Ajit Pai. He says the FCC is empowering cell carriers to block texts and calls that look suspicious. They are also slapping scammers with hefty fines. "The largest fines in the FCC's history have been imposed over the last 18 months to go after robocallers who are using this as a business model," said Chairman Pai. Outgoing Senate Commerce Committee Chairman John Thune (R-SD) is working to get the FCC more resources. His bipartisan "TRACED Act" would allow the FCC to go after "robocallers" for up to three years after a call is placed. In addition, Chairman Thune says fines are not enough; he wants a looming threat of criminal prosecution. If ChairmanThune's legislation doesn't pass before the end of the year, he'll have to try again in the new Congress.

Open Government

“What is the FCC hiding?” Chairman Pai still won’t release net neutrality server logs

Jon Brodkin  |  Ars Technica

The Federal Communications Commission has once again refused a New York Times request for records that the Times believes might shed light on Russian interference in the net neutrality repeal proceeding. The Times made a Freedom of Information Act (FoIA) request in June 2017 for FCC server logs and sued the FCC in September 2018 over the agency's ongoing refusal to release the records. The court case is still pending, but the Times had also appealed directly to the FCC to reverse its FoIA decision. The FCC denied that appeal. Although the Times narrowed its records request to satisfy the FCC's privacy and security concerns, the FCC says it still won't provide any of the requested data. Doing so, the agency asserts, would require more than a simple database search and require the FCC to "create records that do not already exist." The Times' FoIA request was for server logs related to the system for accepting public comments. The Times sought the information in order to investigate Russian involvement in fraudulent public comments. A similar request was made by Buzzfeed News, and the FCC rejected the requests from both news organizations.

"What is the Federal Communications Commission hiding?" FCC Commissioner Jessica Rosenworcel asked in her dissenting statement. She pointed to the widespread fraud in the net neutrality proceeding, saying that "as many as 9.5 million people had their identities stolen and used to file fake comments, which is a crime under both federal and state laws." "Something here is rotten—and it's time for the FCC to come clean,"Commissioner Rosenworcel said. "Regrettably, this agency will not do this on its own. So it falls to those who seek to investigate from outside its walls."

FCC Chairman Pai fired back at Commissioner Rosenworcel in a statement of his own, complaining that Rosenworcel didn't support Pai's efforts to improve FCC transparency during the Obama administration, when Democrats held the commission majority. "What has changed between then and now? Literally nothing, other than the political affiliation of the FCC's leadership (and a lot more transparency now than the agency ever had then)," Pai wrote. "What is required in this matter, as in any other, is sober analysis of the facts and the law—not partisan gamesmanship. Fortunately, the Commission majority embraces that ethos in this item."

FCC Inspector General Report on Sinclair-Tribune Merger Interactions Disclosure

Sharon Diskin  |  Public Notice  |  Federal Communications Commission

In response to a request from Representative Frank Pallone, Jr. (D-NJ), Ranking Member of the House Commerce Committee, the Federal Communications Commission Office of Inspector General (OIG) conducted an investigation into the conduct of FCC Chairman Ajit Pai regarding his interactions with the White House concerning the Sinclair-Tribune merger. The letter further requested FCC OIG to review the phone records and emails of FCC staff to determine whether others has such interactions. Our investigation did not reveal evidence that Chairman Pai acted improperly with respect to the request from Congress that he disclose information related to his interactions with the White House regarding the proposed merger, nor did he make material omissions at the July 25, 2018, House Commerce Committee hearing or at any other time related to the proposed Sinclair-Tribune merger. Further, our investigation did not reveal evidence of any other White House communications with FCC staff.

Stories From Abroad

The high price of free Facebook in the Philippines

  |  Axios

Facebook Basics is an app and mobile site that provides free access to a tightly curated set of web content and, naturally, Facebook itself. Facebook promotes Free Basics as a bridge to the wider internet for consumers in developing nations. But in practice the subsidized content can simply become the internet. That's what happened in the Philippines. That particular kind of internet provided president Rodrigo Duterte with the perfect environment to wage a war of misinformation against his enemies and on behalf of his brutal drug war.

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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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