
The Trump FTC and the Internet
FCC Announces Tentative Agenda for March 2018 Open Meeting
Federal Communications Commission Chairman Ajit Pai announced that the following items are tentatively on the agenda for the March Open Commission Meeting scheduled for Thursday March 22, 2018:
- Wireless Infrastructure Streamlining Order – The Commission will consider a Second Report and Order that would clarify and modify the procedures for NHPA and NEPA review of wireless infrastructure deployments. (WT Docket No. 17-79)
- Reassigned Numbers Database – The Commission will consider a Second Further Notice of Proposed Rulemaking to address the problem of unwanted calls to reassigned numbers. (CG Docket No. 17-59)
- Location-Based Routing for 911 Calls – The Commission will consider a Notice of Inquiry examining location-based routing of wireless 911 calls to ensure that calls are routed to the proper 911 call center. (PS Docket No. 18-64)
- 4.9 GHz Band – The Commission will consider a Sixth Further Notice of Proposed Rulemaking to stimulate use of and investment in the 4.9 GHz band. (WP Docket No. 07-100)
- Streamlining Television Satellite Station Reauthorization – The Commission will consider a Notice of Proposed Rulemaking that proposes to streamline the reauthorization process for television satellite stations that are assigned or transferred in combination with a previously approved parent station. (MB Docket Nos. 18-63, 17-105)
- Consumer Signal Boosters – The Commission will consider a Second Report and Order that would remove the personal use restriction for Provider-Specific Consumer Signal Boosters and a Second Further Notice of Proposed Rulemaking that seeks comment on ways to further expand access to Consumer Signal Boosters. (WT Docket No. 10-4)
Winning the Wireless Future
[Press release] I want the United States to win the 5G race. I outlined the Federal Communications Commission’s strategy for 5G leadership and delivering next-generation wireless connectivity to American consumers using a three-part approach: forward-thinking spectrum policy, modernized rules for infrastructure deployment, and light-touch network regulation.Today, I’m unveiling a lineup for the FCC’s March 22 open meeting that builds on this momentum. Headlining the meeting will be a vital part of our 5G strategy: modernizing our rules to promote the wireless infrastructure of the future. I asked my colleague, Commissioner Brendan Carr, to lead the FCC’s effort to modernize our wireless infrastructure rules. Thanks to his efforts, we’ll be voting on an order at our March meeting that would do just that. Most importantly, it would find that the private sector’s deployment of certain small wireless facilities shouldn’t trigger federal historic preservation and environmental reviews. Red tape like this is not only unnecessary for small cells, but also increases the cost and slows down the deployment of wireless networks. [FCC Chairman Ajit Pai]
Louis Brandeis: A Man for This Season
In the early years of the 20th Century, Louis Brandeis was America’s most influential advocate for antitrust enforcement but his contributions to antitrust have been much debated ever since. Given the current, prominent discussion of the future of antitrust in these economic times, this essay proposes a five-part framework to describe Brandeis’s approach, which relies heavily on institutional roles and responsibilities: (1) Legislators creating antitrust laws should consider broad economic and social issues, including democratic values, (2) Antitrust laws should translate those broad motivations into administrable legal standards within the scope of professional obligations familiar to antitrust enforcers and the courts, (3) Legal professionals vindicate the legislature’s larger social and economic goals by relying on learnings from economics and the social sciences and applying the chosen legal standard to the facts in a determined and detailed manner, while avoiding day-to-day political considerations, (4) Sectoral regulation should be used where justified by specific industry circumstances, such as the existence of local utility monopolies or in circumstances in which normal competitive forces cannot get the job done, and (5) Competition policy, both in antitrust and sectoral regulation, is to be informed by a spirit of experimentation.
Sallet, Jonathan, Louis Brandeis: A Man for this Season (March 1, 2018). Available at SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3132482
[Jonathan Sallet is a Benton Senior Fellow. He works to promote broadband access and deployment, to advance competition, including through antitrust, and to preserve and protect internet openness. He is the former-Federal Communications Commission General Counsel (2013-2016), and Deputy Assistant Attorney General for Litigation, Antitrust Division, US Department of Justice (2016-2017).]
Ohio V. American Express: Do Monopoly Platforms Deserve Special Treatment Under Antitrust?
[Commentary] The Supreme Court heard oral arguments in a pivotal antitrust case involving American Express (“AmEx”). The decision could have a profound impact on the way platform-based companies such as Google and AmEx will be treated under the law. Some of the Court's questioning was truly impressive, showing knowledge of both economics and the inner workings of credit card markets. Other questions? Not so much. Before pointing out the uneconomic utterances, let’s quickly review the case. Credit card companies make money two ways. Card users pay them subscription fees (sometimes) and interest payments. Businesses that accept the cards (“merchants”) also pay credit card companies a fee for processing of the credit transactions. This double-sided business model is termed a “two-sided market” or “two-sided platform.” It isn’t new. Newspapers have been selling subscriptions and ads in a two-sided market for more than a century. What is kind of new is that the internet has made creating these two-sided platforms increasingly common (and easy) by providing places for sellers to find buyers and extracting value from both. Think Uber or Amazon or Google. A district court found AmEx liable for violating antitrust laws because AmEx imposed anti-steering restrictions on merchants; the court held the restrictions harmed competition. Anti-steering restrictions prevent a merchant from inducing — indeed, even telling — a customer to use a "less expensive" credit card in exchange for a discount on the purchase. AmEx appealed that district court's finding to the Second Circuit Court of Appeals, which determined (incorrectly in my view) that it was not sufficient for plaintiffs (the State of Ohio, suing on behalf of its citizens, including citizen merchants) to show antitrust injury to merchants attributable to the anti-steering provisions. Rather, the Second Circuit ruled that plaintiffs have an additionalevidentiary burden to show antitrust injury to cardholders as well — that is, the other revenue stream on the same transaction. The implications of such a special rule for platforms would be profound.
[Hal Singer is a principal at Economists Incorporated, an adjunct professor at Georgetown University’s McDonough School of Business, and a senior fellow at George Washington's Institute of Public Policy.]
Senate Passes Broadband Data Bill
The Senate has passed the Rural Wireless Access Act of 2017. Senate Communications Subcommittee Chairman Roger Wicker's (R-MS) bill would require the Federal Communications Commission to come up with a consistent methodology for wireless broadband coverage data. The goal is to make sure rural areas and urban areas get equitable broadband infrastructure treatment.
The Problem With America's New National Broadband Map
[Commentary] The recently-updated National Broadband Map's biggest downfall lurks behind its search-by-address function, which suggests a precision that its underlying data usually can’t deliver. The Federal Communications Commission data doesn’t get more granular than census blocks—statistical areas that can span a city block or several counties. Within census blocks, internet access can vary quite a bit. Just because your closest neighbors have broadband doesn’t guarantee that you’ll have any. An FCC spokesman said the agency is considering asking for more detailed coverage data from providers, but warned that this could be “burdensome.” The map also doesn’t cite prices. The FCC doesn’t collect that information, much less factor in complications like the discounts that cable firms offer for bundling TV, phone, and internet service. To make things more confusing, the broadband map identifies internet providers by their holding companies, not necessarily the names you’d recognize on a bill. Finally, the newest internet providers don’t appear on the map at all. [Rob Pegoraro]
A New Tool To Help Close the Digital Divide
[Press release] Federal Communications Commission Chairman Ajit Pai has said that bridging the digital divide is his highest priority. And now, we have a valuable tool that will aid in efforts to bridge the gap: a new interactive broadband map, which will help the public and policy-makers understand where there are gaps in delivering fixed broadband and much more. This new map is built on the latest data for fixed-broadband deployment, collected every six months by the FCC from providers on Form 477. Right now, that’s data as of December 2016, but the new map is designed to be quickly and easily updated with the most recent data sets.
AT&T has good and bad news for users of its limit-ridden unlimited plans
AT&T raised the price of one unlimited smartphone data plan by $5 a month and lowered the price of another by $10, for single-line users. Instead of the entry-level unlimited plan costing $60 and the better plan costing $90, the single-line prices are now $65 and $80 a month (plus monthly taxes and fees and a one-time $30 activation fee for each line). AT&T raised the family plan prices by $5 a month for both of these unlimited plans. For example, four-line plans that used to cost $155 or $185 a month now cost $160 or $190. (These prices are after a discount that may not apply on your first bill.) Each of these postpaid plans is getting some enhancements, but they're not free of limitations. "Unlimited" means that you'll never get hit with an overage fee or have your data cut off entirely, but speeds can be throttled in some situations, and mobile hotspot usage isn't allowed on the cheaper tier.
Social Media Use in 2018
The social media landscape in early 2018 is defined by a mix of long-standing trends and newly emerging narratives. Facebook and YouTube dominate this landscape, as notable majorities of U.S. adults use each of these sites. At the same time, younger Americans (especially those ages 18 to 24) stand out for embracing a variety of platforms and using them frequently. Some 78% of 18- to 24-year-olds use Snapchat, and a sizeable majority of these users (71%) visit the platform multiple times per day. Similarly, 71% of Americans in this age group now use Instagram and close to half (45%) are Twitter users. Facebook remains the primary platform for most Americans. Roughly two-thirds of U.S. adults (68%) now report that they are Facebook users, and roughly three-quarters of those users access Facebook on a daily basis. With the exception of those 65 and older, a majority of Americans across a wide range of demographic groups now use Facebook. But the social media story extends well beyond Facebook. The video-sharing site YouTube – which contains many social elements, even if it is not a traditional social media platform – is now used by nearly three-quarters of U.S. adults and 94% of 18- to 24-year-olds. And the typical (median) American reports that they use three of the eight major platforms that the Center measured in this survey. These findings also highlight the public’s sometimes conflicting attitudes toward social media. For example, the share of social media users who say these platforms would be hard to give up has increased by 12 percentage points compared with a survey conducted in early 2014. But by the same token, a majority of users (59%) say it would not be hard to stop using these sites, including 29% who say it would not be hard at all to give up social media.
As DC sits on the sidelines, these states are looking to regulate Facebook, Google and Twitter
At a time when the US Congress seems paralyzed by partisanship — and either too reluctant or distracted to take on Silicon Valley’s most powerful players — Maryland is among a growing roster of states trying to remedy some of the most pressing ills of the digital age. Along with Maryland, leaders from New York to Washington state have pitched new bills that would make more information about online political ads available to local voters. In California, meanwhile, state leaders are taking aim at the scourge of social-media bots, or networks of computer-directed accounts often used to amplify misinformation. Of course, local policymakers face the same challenges as their federal brethren: They must navigate their legislatures’ labyrinthine corridors of power, explaining complex tech issues to their political peers, who may not know the industry well. If they succeed, however, supporters hope they might soon spur other states — and, eventually, the federal government — to take similar action.
Nonprofits scramble to comply with new Google ad policy
Google gives $10,000 in credits each to 35,000 nonprofits worldwide every month to buy ads on its search engine. But Google found that some ads received few clicks and announced in December 2017 that it would stop funding groups that generate clicks off less than 5 percent of their ads in two consecutive months. Grant recipients called it a wake up call to pay attention to Google after years of focusing on social media marketing. But despite rushing to comply, several said they could not do so in only two months and that their accounts may not get funded for March. “We’re very grateful for the program,” said Conrad Contreras, communications manager for Greenlining Institute, an Oakland (CA) social justice organization afraid of losing the funds. “But five percent in two months, it’s just unrealistic.” Organizations can seek reinstatement after demonstrating changes. The 15-year-old AdWords Ad Grants program did not previously have a click threshold. Advertisers list search terms such as “donate clothing” for which they would like their ads to appear. Perfecting phrases is key to garnering clicks.
Twitter launches another bid to tackle bots and abuse after years of promises
Twitter has asked for help in tackling the rampant harassment, bots, misinformation and polarisation in a more strategic way so that it can improve the “health” of conversation on the platform, said the company’s CEO, Jack Dorsey. Dorsey suggested that the health of conversations could be measured using indicators developed by the media analytics firm Cortico, which include: shared attention (is there overlap in what we are talking about?), shared reality (are we using the same facts?), variety of opinion (are we exposed to different opinions grounded in shared reality?) and receptivity (are we open, civil and listening to different opinions?). “We aren’t proud of how people have taken advantage of our service, or our inability to address it fast enough,” Dorsey tweeted. “We’ve focused most of our efforts on removing content against our terms, instead of building a systemic framework to help encourage more healthy debate, conversations, and critical thinking. This is the approach we need now.”
FCC chairman declines NRA gun award
Federal Communications Commission Chairman Ajit Pai turned down an National Rifle Association of America (NRA) gun award he received at the Conservative Political Action Conference, citing the advice of ethics officials at his agency. An executive from the NRA named Chairman Pai the Charlton Heston Courage Under Fire Award recipient at CPAC for his efforts to repeal the Obama-era net neutrality rules. The award was a Kentucky handmade long gun, which the NRA said would be housed at the organization’s museum until he could retrieve it. But Chairman Pai, in letters sent to the NRA and to the American Conservative Union, which puts on the conference, noted he was "surprised" by the award and turned down the gun. “As you know, once my staff became aware of what was happening, they asked backstage that the musket not be presented to me to ensure that this could be first discussed with and vetted by career ethics attorneys in the FCC’s Office of General Counsel,” Chairman Pai wrote, according to an FCC source who relayed the text of the letters. “Therefore, upon their counsel, I must respectfully decline the award,” he wrote. “I have also been advised by the FCC’s career ethics attorneys that I would not be able to accept the award upon my departure from government service.” Government ethics rules would generally prevent FCC officials from accepting awards worth more than $200 without written clearance from their agency’s ethics officials, said Larry Noble, senior director and general counsel for the Campaign Legal Center, a nonprofit organization that studies ethics rules. Noble noted he had "serious questions" about Pai receiving the award when he learned of it.
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