Wednesday, May 29, 2019
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The Measuring the Economic Impact of Broadband Act (S.1289) would require the Department of Commerce to submit a report to the Congress assessing the effects of broadband deployment on the U.S. economy. The first report would be due two years after the bill’s enactment, with subsequent reports due every two years. Such reports would consider the effect of e-commerce, peer-to-peer commerce (such as Etsy), and the production of digital media on the U.S. economy. The Department would be required to consider the effect of broadband deployment on employment, job creation, business headcounts, income, telehealth, and agriculture. Using information from the Bureau of Economic Analysis (BEA) and the National Telecommunications and Information Administration, CBO estimates that implementing S. 1289 would cost $2 million over the 2019-2024 period for the BEA to coordinate with several federal agencies and to produce the required analyses and reports; such spending would be subject to the availability of appropriated funds.

Rep Scott Tipton (R-CO) introduced a bill May 10, the Reprioritizing Unserved Rural Areas and Locations for Broadband Act (RURAL Broadband Act) which if passed would improve the process for expanding broadband to rural communities. “It’s an outrage that rural communities still don’t have the same access to high-speed internet as urban areas,” said Reo Tipton. “From our children’s ability to do homework, to starting and growing a small business, to online banking, it’s time to bring rural Colorado and rural communities across the country to the 21st Century, and this legislation will do just that.” The RURAL Broadband Act would establish better coordination between the US Department of Agriculture’s Rural Utilities Service program (RUS) and the Federal Communications Commission’s Universal Service Fund (USF) to prioritize buildout to areas that currently lack broadband.The bill would allow the USDA to support a network in any rural area UNLESS:
- An existing network operated in the area by another broadband provider receives ongoing High Cost USF support; and
- The existing network is at least up to the FCC-specified broadband standard (currently 25/3 Mbps); and
- The existing network is fixed terrestrial (wired or fixed wireless)

The Federal Communications Commission announced the conclusion of bidding in Auction 102, the FCC’s second auction of millimeter wave spectrum suitable for 5G, which is providing licenses in the 24 GHz band. With the closing of bidding in this auction along with the closing of bidding in Auction 101 for 28 GHz band licenses, the FCC has now completed its first set of high-band airwaves auctions to make spectrum available for 5G wireless, Internet of Things, and other advanced spectrum-based services. Together, the Spectrum Frontiers auctions of the 24 GHz and 28 GHz bands raised more than $2.7 billion in gross bids. Combined, 55 applicants were qualified to bid, and the winning bidders won 5,869 licenses.
- Auction 102 Results: Bidding in the auction of 24 GHz Upper Microwave Flexible Use Service licenses (Auction 102) concluded today at 5 p.m. E.T. with the end of the assignment phase, which followed the close of clock-phase bidding on April 17, 2019. Auction 102 raised (in gross bids) $2,024,268,941, and bidders won 2,904 of the 2,909 licenses offered.
- Auction 101 Results: On January 24, 2019, bidding concluded in the auction of 28 GHz Upper Microwave Flexible Use Service licenses (Auction 101), the Commission’s first auction of high-band spectrum licenses for 5G wireless, Internet of Things, and other advanced spectrum-based services. This auction raised (in gross bids) a total of $702,572,410, and bidders won 2,965 of the 3,072 licenses offered.

The Trump administration’s offensives aimed at frustrating the 5G ambitions of China and mobile-technology giant Huawei might end up impeding America’s wireless ambitions, too. Recent White House actions land as China and the US race to launch the superfast cellular networks, with Huawei and its Chinese customers targeting a nationwide 5G rollout in 2020. A US Commerce Department measure, designed to hinder Huawei from buying critical components, might make it harder for American and European telecom-equipment makers to buy certain supplies as well, Western industry executives said. In addition, the Trump administration’s new 25% tariffs on Chinese goods are already making it more expensive for Western companies with Chinese factories, including Silicon Valley’s Cisco Systems to send products to the US. Together, this pair of actions could make it more expensive for US wireless carriers such as AT&T and Verizon to buy the cellular-tower hardware, switches, and routers needed for 5G. “The service providers would be buying that stuff,” said K.C. Swanson, global-policy director at the Telecommunications Industry Association, a trade group representing telecom-equipment makers that do business in the US. She said higher costs could lead carriers to charge customers more for wireless plans, making 5G less attractive for consumers.

The recent presidential executive order barred US companies from buying foreign-made telecommunications equipment deemed a national security risk. Although the order does not name Huawei, Congress and our intelligence agencies have voiced concern that the company’s equipment contains vulnerabilities that the Chinese government and others could exploit to spy on or harm US networks. But the executive order misses a critical problem: our networks already contain equipment from Huawei — lots of it. The Federal Communications Commission must find this equipment and work with other policymakers to fix the security problems and fund a solution for affected carriers. Policymakers like the FCC need to figure out how to deal with the equipment that’s already in our network. Find it. Fix it. Fund it. Our security is at stake.

Today's tech giants achieved success and scale by promoting their openness, but the industry's open doors are shutting, one by one. Today's dominant tech platforms are privately owned and governed, and their owners will readily adjust the "openness" dial to suit their needs — booting users perceived to be undesirable, blocking competitors, and locking down key data structures (like Facebook's "social graph") to prevent users from choosing alternatives. Today's cloud-based software model pushes businesses and individuals away from the digital commons and toward closed, privately owned dataspaces. Those who still want to own their own digital real estate find that cybersecurity threats mean they can't realistically protect themselves. Network access in the US and most other countries is controlled by a small number of giant service providers, and the reversal of net neutrality rules means that they have a free hand to promote their own properties and stifle competitors. The escalating trade war between the US and China, which threatens to throttle growth in both countries, is splintering the global network economically, technically, and culturally, placing new barriers to international exchange.

A growing tech-skeptic chorus is drawing attention to the ways in which information technology disrupts democracy. No country is immune. With a better understanding of the principles undergirding both foreign and domestic responses to the threats posed by big tech, each subsequent section in this paper will lay out the specific dimensions of the political and economic problems that have arisen in the digital age, the policy responses and proposals pursued abroad, and the ideas guiding debate in the US. The goal of this paper is to serve as a resource so that as US lawmakers consider how to improve transparency in online advertising, protect user privacy, mitigate the threat posed by harmful content, empower content creators dependent on online platforms, and ensure competition in the digital economy, they can draw on the experience of other democratic governments around the world.

Busting up the nation’s tech giants would be much harder than making a campaign pledge. Corporate breakups are a huge, and rare, undertaking for the government, and a social media company like Facebook presents unique challenges that didn't exist with past antitrust successes like the dismembering of AT&T in the 1980s. Here are some of the obstacles standing in the way of turning this rallying cry into reality:
- Proving Facebook is a monopoly
- Deciding what to break up
- Antitrust cases take time and money
- The legal bar has gotten higher
- Limits on the president’s power
Disclaiming responsibility: How platforms deadlocked the Federal Election Commission's efforts to regulate digital political advertising

Digital advertisements used to interfere in the 2016 US presidential election lacked disclaimers stating who paid for them. This was deliberate on the part of the platforms: Facebook and Google actively sought exemptions from mandatory disclaimer requirements that are standard for print and broadcast media. While prior research has placed blame squarely on the Federal Election Commission (FEC) for their lack of oversight of digital advertising, this paper demonstrates the way in which the platforms–Facebook in particular–engineered this regulatory failure in the form of capture on this specific issue. An analysis of documents submitted to the FEC demonstrates that Facebook and Google put profit ahead of the public interest in seeking exemptions from disclaimer requirements, refusing to change the size of their advertisements and downplaying the deceptive potential of political ads. Due to partisan gridlock and a lack of technological expertise, the FEC failed to rule decisively on exemptions or agree on alternative means of disclaimers for Facebook and mobile app ads, setting the stage for electoral interference in 2016. Implications for current regulatory efforts are discussed.

Parler, a Twitter-like platform, was initially hatched in 2018 as a tool for digital news outlets to claw revenue back from big social networks like Facebook. But as those platforms purge some of the internet’s most inflammatory supporters of President Donald Trump over posts deemed dangerous or offensive, Parler has carved out a niche among these banned right-wing influencers — like Gavin McInnes, Laura Loomer and Milo Yiannopoulos. As conservative distrust of social media giants rises to the top of Washington’s political agenda, Parler has also gained the notice of some bona fide Republican leaders: Trump 2020 campaign manager Brad Parscale and Sen Mike Lee (R-UT) both began posting on the site in May. Apparently, the President's team is considering setting him up with an account on the site.

President Trump's tweets don't pack the punch they did at the outset of his presidency. His Twitter interaction rate — a measure of the impact given how much he tweets and how many people follow him — has tumbled precipitously. It's a sign that his strongest communication tool may be losing its effectiveness and that the novelty has worn off.

The New York Times Company is urging a judge to order the Federal Communications Commission to disclose information about network neutrality commenters, despite the agency's objections that doing so could compromise people's privacy. “The FCC’s claims dramatically overstate the potential for harm,” the Times writes in court papers filed May 23 with the US District Court in the Southern District of New York. "The FCC both overstates the intrusion on personal privacy that may result from release of the server log and understates the public interest in release of the information,” the newspaper writes. The Times, which is investigating potential Russian meddling in the 2017 net neutrality proceeding, recently sued the FCC in an effort to uncover information about people who filed comments with the agency. The newspaper is seeking a host of data -- including users' IP addresses and time stamps -- for all public comments regarding net neutrality submitted between April 26, 2017 and June 7, 2017. The FCC has argued it can't divulge data about commenters' IP addresses without compromising people's privacy.

I recently traveled to Brussels to see my long-time friends Gerry Salole and Rien van Gendt at the European Foundation Centre. As usual, we spoke about the status of philanthropy in Europe and the United States. A huge topic, indeed.
American foundations are not facing up to and acting on a central reality of our time…if you can’t win and hold power within our country’s key institutions, we risk losing on just about every issue we care about. I believe this fight is about equity and trust. But it is also about power, values, ideology. It seems to me that there is much to discuss amongst European and American philanthropies, so much that resonates with situations developing in each of our regions. So, I welcome Gerry and Rien’s idea to provide a safe space for a continuing discussion with concerned peers in a transatlantic retreat on the State of Philanthropy. We each have a lot to learn, from each other and about the new world in which we all operate.
[Marjorie Benton is a fundraiser and grantor for organizations whose missions focus on women and children’s issues, and peace and disarmament. She is on the board of trustees for the Benton Foundation.]

Kristine Fargotstein has been named VP, policy and advocacy, for USTelecom-The Broadband Association. Fargotstein comes from the Federal Communications Commission, where most recently she had been detailed to the House Communications Subcommittee to work on broadband infrastructure, network neutrality, and spectrum issues. While at the FCC, Fargotstein's posts included acting wireline advisor to FCC Chairman Ajit Pai, special counsel in the Office of General Counsel, legal advisor to the Wireline bureau chief, and attorney advisor in the Wireline Competition Bureau. She is also an adjunct communications law professor at George Mason University.

Widespread internet access is changing the African continent, largely thanks to the rise in smartphone ownership. Many Africans who are unable to afford costly broadband connections can now access the web for the first time, via sub-$50 Android phones. The rate of adoption continues to surge: A GSMA study predicts Africa will get 300 million new internet users by 2025. Africans say there's much to be hopeful about. Basic internet services tangibly improve quality of life. Something as simple as an app that coaches women giving birth saves lives in countries like Ethiopia, where a vast majority give birth outside of health facilities. Rudimentary internet access can facilitate huge productivity boosts for agriculture workers around the continent; farmers, for instance, save precious time by accessing market prices through their phones instead of a physical trip into town.
But there are some consequences of internet adoption that could temper optimism. Africa is a continent historically beleaguered by authoritarianism, unrest and underdevelopment. The internet isn't inherently a force for progress or disruption, but instead is a tool that can be used for either of those ends. Some of the internet's applications are helping to build up Africa, while others are exacerbating the continent's problems.
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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