Daily Digest 1/31/2018 (State of the Union's Broadband)

Benton Foundation

 

Broadband

House Subcommittee on Communications and Technology Examines Legislation to Improve Nation’s Broadband Infrastructure

The House Subcommittee on Communications and Technology examined  25 bills that seek to improve broadband infrastructure across the country. Members engaged with a panel of seven expert witnesses who provided a range of perspectives on this important issue. Chairman Blackburn said, “We wanted to have a very inclusive hearing today to discuss all of the ideas from Subcommittee members on both sides of the aisle to promote broadband infrastructure deployment with a goal of closing the digital divide. Whether you agree or disagree with any individual idea, it is so important that we get the conversation started. And we have plenty to talk about, with 25 bills introduced in time to be part of our hearing today. I very much appreciate all of the thoughtful proposals and look forward to seeing many of them progress in the coming weeks.”

House Commerce Committee Ranking Member Frank Pallone, Jr. (D-NJ) said, "I appreciate Republicans scheduling a hearing on broadband deployment and including some Democratic proposals, but I’m concerned that the Majority is simply trying to jam too much into this one hearing.  Seven witnesses discussing 25 bills will not help the American public understand these proposals, let alone the members of this Committee.  What’s more, we do not even have the relevant agencies here to help us understand how they will interpret the often conflicting directions included in the Republican bills. We are now a little over year into this Administration, and all Washington Republicans have  to show the American people in this Subcommittee’s purview are a check-the-box hearing designed to paper over the Republicans’ failure on infrastructure; their erosion of our privacy rights; and their elimination of net neutrality.  When it comes to governing, this Subcommittee is falling short."

Thirty-Fifth Quarterly Status Report to Congress Regarding BTOP

As of September 30, 2017, only two BTOP infrastructure projects remained in active status: Los Angeles Regional Interoperable Communications System Authority (LA-RICS) and the Executive Office of the State of Mississippi (Mississippi). All remaining projects completed their project activities. NTIA continues to protect taxpayer investments by proactively engaging with these grant recipients to monitor project activities and grant compliance. Each quarter, the active BTOP recipients also report their financial and project performance. NTIA analyzes these reports closely to monitor progress and compliance. The Department of Commerce Office of Inspector General (OIG) has released a new audit report this quarter, Strengthening Grant Administration and Financial Controls Will Improve Management of the LA-RICS BTOP Grant (October 16, 2017). NTIA is working with LA-RICS to resolve the audit findings. The OIG also released a copy of an investigative report in June, Investigative Report on Alleged NTIA Opportunities Program Grant (June 15, 2017) involving the agency’s award to the Executive Office of West Virginia.

California Senate defies FCC, approves net neutrality law

The California State Senate approved a bill to impose network neutrality restrictions on Internet service providers, challenging the Federal Communications Commission attempt to preempt such rules. The FCC is already being sued by 21 states and the District of Columbia, which are trying to reverse the net neutrality repeal and the preemption of state laws. Attempts to enforce net neutrality rules at the state or local level could end up being challenged in separate lawsuits. California may be the closest to passing such legislation after Jan 29's Senate approval of SB-460.  The bill passed 21-12, with all 21 ayes coming from Democratic state Senators. The bill is now being moved to the State Assembly, where Democrats have a 53-25 majority over Republicans

Gov Rick Snyder (R-MI) signs Executive Order to create a roadmap for enhancing statewide broadband access and connectivity

A comprehensive plan to improve access to broadband services in Michigan will be developed under an Executive Order signed by Gov Rick Snyder (R-MI). The Executive Order creates the Michigan Consortium for Advanced Networks, which is directed to establish a roadmap to help strengthen statewide broadband access and connectivity.  Executive Order 2018-2 directs the Michigan Consortium for Advanced Networks to identify gaps in broadband service coverage and capacity, current efforts underway to address connectivity issues, and key strategies and recommendations for the state and private sector to pursue to achieve enhanced connectivity. The Consortium will consider recommendations provided by Gov. Snyder’s 21st Century Infrastructure Commission’s report and must present a plan by August 1, 2018. 

This Week in Comcast: Is municipal broadband the next net neutrality?

Like network neutrality, publicly-owned broadband is a topic that’s often murky, as major players seek to establish their own set of facts and define the issue based on their own priorities. Outside cash, for or against, pours in to fight the issue.  Comcast, for its part, is a known contributor to industry associations that have put up large chunks of change to fight municipal broadband legislation at the grassroots level, such as in Fort Collins (CO) where city officials recently approved building out a municipal network. There’s nothing to suggest "astroturfing" is happening now with municipal broadband, but it’s worth noting how much the issue is beginning to bubble up, which means even the seemingly insignificant actions of ISPs like Comcast will be increasingly scrutinized by advocates, media outlets and stakeholders, just like they are when net neutrality comes into play.

When the city is your internet provider, the real cost may be hidden

[Editorial] In 2010, Highland (IL) leaders and residents decided they were not getting the broadband service they deserved, so they built their own fiber optic network. The city’s fiber optic company was just cited in a Harvard University study as fifth for value out of 27 public utilities compared to private competitors. A resident will pay Highland $383 a year compared to $679 a year for Charter, the study said. However, It is publicly funded, and is still paying about $1 million a year toward debt for the system’s $12.2 million construction tab. It will continue paying until 2032. Out of the $4 million current year’s budget, Highland’s fiber optic will run $1.63 million in the red. That cost is hidden on every resident’s city utility bill. Getting to those additional 763 customers will cost $53,000 in engineering. The construction costs have yet to be tabulated. So while Highland should celebrate the Harvard honor, their fiber optic company represents a cautionary tale for other cities pondering going into business. No matter how capable or efficient you might be, a changing market that shutters a private business just turns into a never-ending ratepayer or taxpayer burden when it is a public utility.

The Fight for High-Speed Internet Continues in Burlington, NC

Even as AT&T continues to expand its fiber optic network to condominium and apartment complexes in Burlington (NC) — AT&T says that at least 10 condominium and apartment complexes are connected to its fiber optic network — most city residents and businesses don't have access to fiber optic Internet. Instead, they get their Internet service through slower cable or DSL lines. The average speed is 41.4 megabits per second, according to Broadband Now, a nonprofit company that tracks Internet access in cities around the country. Government buildings will frequently have fiber connected directly to their buildings, said Jameson Zimmer, Broadband Now’s director of content. Burlington is connected, but is not allowed to provide the Internet as a utility, so it cannot share its network with businesses. In 2015, Burlington joined the Triad Gigabit Initiative, a group of municipalities and universities whose mission is to bring high-speed Internet to everyone in the Triad. The group has selected North State Communications to expand its fiber-optic network.

News From the FCC Meeting

FCC Takes Final Steps for Next Phase of Rural Broadband Expansion

The Federal Communications Commission took the final actions required to launch its innovative Connect America Fund Phase II auction, which will provide up to nearly $2 billion over the next decade to expand fixed, high-speed Internet service in unserved rural areas. In a Public Notice adopted Jan 30, the FCC scheduled the auction to begin on July 24, set a March 30 deadline for applications to participate, and set out detailed procedures for the auction. The FCC also adopted an Order on Reconsideration resolving all pending challenges to earlier FCC auction implementation decisions. Nearly 1 million homes and businesses nationwide are in unserved rural areas where providers are eligible for support from the auction. Qualified providers will compete for support of up to $1.98 billion over the next decade to offer voice and broadband service in unserved areas where, absent subsidies, there is no business case for expanding or providing service. By harnessing market forces, the auction is designed to provide consumers with high-quality, broadband service in an efficient, cost-effective way. The auction is the first reverse multipleround auction to provide ongoing Connect America Fund support for fixed broadband and voice service in high-cost rural areas.

FCC Improves Wireless Emergency Alerts

The Federal Communications Commission adopted rules to improve the geographic targeting of Wireless Emergency Alerts (WEA), a system that delivers critical warnings and information to the public on their wireless phones. The updated rules are intended to promote the wider use and effectiveness of this lifesaving service, especially for state and local authorities to convey critical messages to their communities. Jan 30’s action requires participating wireless providers to deliver WEA alerts in a more geographically precise manner so that the alerts reach the communities impacted by an emergency without disturbing others. Specifically, the FCC’s rules require participating wireless providers to deliver WEA alerts to the target area specified by the alert originator with no more than a one-tenth of a mile overshoot. This enhanced geo-targeting requirement will go into effect on November 30, 2019. Today’s action also requires that alert messages remain available in a consumer-accessible format on wireless devices for 24 hours after receipt, or until the consumer chooses to delete the message, which will enable the public to better review emergency information. 

FCC Proposes to End Paper Filing Requirement for Broadcast Station Docs

The Federal Communications Commission adopted a Notice of Proposed Rulemaking that tentatively concludes that the Commission should eliminate the decades-old requirement that broadcasters routinely file paper copies of station contracts and certain other documents with the Commission. Since the late 1930s, the Commission has required broadcasters to submit copies of certain contracts and documents relating to ownership and operation of broadcast stations. Typically, stations either mail or hand deliver paper copies of these documents to the Commission. The documents are then made available to FCC staff and the public via the Commission’s public reference room. Jan 30’s Notice tentatively concludes that the Commission should eliminate the paper filing requirement for these documents, relying instead on the FCC’s existing public file rules. The public file rules require licensees and permittees to make these documents available for public inspection by either (i) retaining copies of these documents in their public files or (ii) maintaining an up-to-date list of such documents in their public files and providing copies to a requesting party within seven days. For international broadcast stations, which do not have public file obligations, the Notice proposes to eliminate the paper filing requirement but retain the Commission’s ability to obtain the documents upon request. 

FCC Votes to Establish Office of Economics & Analytics

The Federal Communications Commission voted to create an FCC Office of Economics and Analytics. This new unit will help ensure that economic analysis is deeply and consistently incorporated as part of the agency’s regular operations. The Office of Economics and Analytics will use existing staff resources by bringing into one office FCC economists, attorneys, and data professionals who work on economic analysis, data policy and management, and research. In support of and in coordination with other FCC bureaus and offices, this new office will provide economic analysis for rulemakings, transactions, adjudications, and other Commission actions. It will manage the FCC’s auctions program, and it also will manage significant FCC data collections such as Form 477. It will develop policies and strategies to manage the FCC’s data resources and establish best practices for use throughout the agency. In addition, it will conduct long-term research on ways to improve the Commission’s policies and processes. The new office will include four divisions: economic analysis, industry analysis, auctions, and data. 

FCC Proposes $18.7 Million Fine Against DataConnex

State of the Union

Nicol Turner-Lee: One year into his presidency, President Donald Trump is planning to release the details of his $1.7 trillion infrastructure plan during the State of the Union. While the plan will fund the nation’s public works projects, the jury is still out on whether or not broadband infrastructure will be sufficiently covered, especially as it has become the nation’s next critical asset. Recently, the bipartisan House Rural Broadband Caucus encouraged the president to include funding for rural broadband access, citing its deployment as a pathway to job creation, economic development, and improved service delivery for remote populations. 

Tom Wheeler: The [Federal Communications Commission] has spent twelve months looking backwards at the previous administration’s policies and dismantling what they dislike, rather than developing a vision for the protection of consumers and a competitive market in a time of rapid technological change. At its height came the decision to not only reverse the law of the land with regard to an open internet, but the even more shocking surrender of authority to the Federal Trade Commission. For the agency charged by Congress with responsibility over electronic communications to walk away from the most important network of the 21st century is the epitome of lack of vision. You cannot walk away from responsibility and call it progress.

 
Wireless

DOJ, SEC Probe Apple Over Updates That Slow Older iPhones

Apparently, The Department of Justice and the Securities and Exchange Commission are investigating whether Apple violated securities laws concerning its disclosures about a software update that slowed older iPhone models. The government has requested information from the company. The inquiry is in early stages, apparently, and it’s too soon to conclude any enforcement will follow. Investigators are looking into public statements made by Apple on the situation. While the slowdown has frustrated consumers, US investigators are concerned that the company may have misled investors about the performance of older phones.

AT&T to lose hundreds of 5G millimeter wave spectrum licenses as part of FCC/FiberTower settlement

The Federal Communications Commission announced a settlement with AT&T’s FiberTower that involves the company returning hundreds of millimeter wave spectrum licenses to the agency. The settlement essentially means AT&T won’t get access to those spectrum licenses, and it paves the way for the agency to reauction those licenses at some point in the future.  Specifically, as part of the agreement, FiberTower is abandoning all of its 24 GHz spectrum licenses (around 121 total) and roughly the same number of 39 GHz spectrum licenses. Thus, those abandoned licenses will revert back to FCC ownership. So, due to its agreement to purchase FiberTower, AT&T will only get around 479 of FiberTower’s 39 GHz spectrum licenses and none of the company’s 24 GHz licenses.

via Fierce
Ownership

Third Circuit Asked to Delay Implementation of Media Ownership Rules

The deregulatory changes the Federal Communications Commission recently adopted to its media ownership rules are due to take effect on Feb. 7. Prometheus Radio Project and Media Mobilizing Project, however, have filed an appeal of those rule changes in the U.S. Court of Appeals for the Third Circuit and, as expected, have now asked the Court to delay the FCC’s implementation of those changes. Interestingly, appellants here have not filed a traditional request for a stay. Rather, they have filed a petition for writ of mandamus. In that petition, they note that the Commission’s ownership orders (the August 2016 Order under former Chairman Wheeler and the December 2017 Reconsideration Order under Chairman Pai) were both adopted at least in part in response to a remand order from the Court. The petition argues that the Court should order the Commission to delay the effectiveness of the rule changes because the orders do not respond to that remand in so far as it directed the Commission to adopt a definition of “eligible entities” or conclude that it could not do so. The petition also argues that the Reconsideration Order does not address the impact its changes would have on minority and female ownership and that the consolidation allowed by the rule changes would likely have an adverse, and irreparable, effect on existing and potential female and minority owners.

 
 
Labor

Wireless Workers Launch New 'Network'

Communications Workers of America members at AT&T, Verizon and T-Mobile have created a national network of union and non-union workers organizing to "protect good jobs and quality customer service." According to CWA, hundreds are meeting in Orlando (FL) Jan 30 to strategize about changing the industry "from within." That coincided with a planned demonstration in front of AT&T and Verizon stores there by wireless workers in support of AT&T Wireless employees in the Southeast currently trying to negotiate a new contract.

Company News

Facebook Wants to Fix Itself. Here's a Better Solution.

[Commentary] Where significant negative externalities are created, companies should be on the hook for the costs, just as an oil company is responsible for covering the costs of cleaning up a spill. The cost of the damage caused by election meddling is difficult to calculate. One possible solution is a two-strike rule: with the first strike, you fix the problem and, if possible, pay a fine; with the second strike, government regulators will change or remove the features that are being abused. Only with financial liability and the direct threat of feature-level regulation will companies prioritize decision-making that protects society from the worst kinds of harm. Given what is at stake in the upcoming elections and beyond, we must not accept distraction and empty contrition in place of real change that will protect us. Only with real transparency, real accountability, and real regulation will we get real change. There is too much at stake to accept anything less. [Sandy Parakilas is an entrepreneur and worked at Facebook in 2011 and 2012]

via Wired
 
 
Stories From Abroad

UK mass digital surveillance regime ruled unlawful

British Appeal court judges have ruled the government’s mass digital surveillance regime unlawful in a case brought by the Labour deputy leader, Tom Watson. Liberty, the human rights campaign group which represented Watson in the case, said the ruling meant significant parts of the Investigatory Powers Act 2016 – known as the snooper’s charter – are effectively unlawful and must be urgently changed. The government defended its use of communications data to fight serious and organised crime and said that the judgment related to out of date legislation. Minister Ben Wallace said that it would not affect the way law enforcement would tackle crime. The court of appeal ruling said the powers in the Data Retention and Investigatory Powers Act 2014, which paved the way for the snooper’s charter legislation, did not restrict the accessing of confidential personal phone and web browsing records to investigations of serious crime, and allowed police and other public bodies to authorise their own access without adequate oversight. The three judges said Dripa was “inconsistent with EU law” because of this lack of safeguards, including the absence of “prior review by a court or independent administrative authority”.

More Online

Republican National Committee Won't Return Wynn Donations Unless His Guilt Is Confirmed (Wall Street Journal)


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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