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Measuring the Economic Impact of Broadband
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Senators Klobuchar, Capito Introduce Bipartisan Legislation to Measure the Economic Impact of Broadband

Sens Amy Klobuchar (D-MN) and Shelley Moore Capito (R-WV), co-chairs of the Senate Broadband Caucus, reintroduced the Measuring the Economic Impact of Broadband Act. While the federal government measures the economic impact of many industries, it does not produce current, reliable statistics on the economic impact of broadband on the US economy. Accurate, reliable data on the economic impact of broadband and the digital economy is a valuable tool for policymakers and business leaders and many research institutions, state broadband offices, and trade associations have highlighted the need for this data. The Measuring the Economic Impact of Broadband Act would require the Bureau of Economic Analysis in consultation with the Assistant Secretary of Commerce for Communications and Technology to conduct a study of the effects of the digital economy and the adoption of broadband deployment on the US economy. In conducting this analysis, the Secretary will consider broadband deployment and adoption of digital-enabling infrastructure, e-commerce and platform-enabled peer-to-peer commerce, and the production and consumption of digital media. The Secretary may consult representatives of business, including rural and urban internet service providers and telecommunications infrastructure providers; state, local, and Tribal government agencies; and consumer and community organizations.

If your cable operator invites you to dump its TV service and switch to online streaming, its internet rates may hide a surprise that will be painful to you and profitable to your internet provider. Data caps limiting how much you can download per month are an unpleasant reality at too many providers, but small cable services can be significantly less generous with them. Those same companies also have the hardest time keeping programming costs in check and increasingly lose money on video. "(A)mong smaller cable operators, it has become commonplace to stop even trying to preserve the video subscriber base," a MoffettNathanson Research study observed.

The tussle over "network neutrality" started 20 years ago in Portland (OR). Today, Portland and its region are poised to be Ground Zero for resolving the real issues behind public concern over “net neutrality”—the stagnant, uncompetitive, hopelessly outclassed state of internet access in America. Portland is taking seriously the idea of a publicly overseen dark-fiber network over which private providers could compete to offer cheap, ubiquitous internet access. A grassroots group called Municipal Broadband PDX is agitating for construction of a publicly owned open-access fiber network across the region. Citizen advisory committees will play a crucial role in the Portland region when it comes to planning for publicly overseen dark fiber.
[Susan Crawford is a professor at Harvard Law School]

Members of the 4Competition Coalition met recently with Federal Communications Commissioners Brendan Carr, Michael O’Rielly, and Geoffrey Starks, as well as advisers to Chairman Ajit Pai and other FCC officials, to reiterate their opposition to the proposed merger. The 4Competition Coalition consists of Dish Network, AFL-CIO, Common Cause, Rural Wireless Association and more than a dozen other entities. Their meetings come as several Wall Street analysts have lowered the odds that the deal will go through. Opponents of the deal say that if allowed to proceed, the merger would lead to price increases for virtually all wireless customers, substantially raise wholesale rates and cause significant job losses, all while failing to deliver on promises to expand rural coverage. They also seized on Sprint executives’ comments about the status of its network and pointed to Chief Commercial Officer Brandon Dow’s testimony to the California Public Utilities Commission in Feb, with statements like: “Sprint will be here to compete whether we merge with T-Mobile or not,” and “[We] are a stable company. Sprint is not going bankrupt.”

The Justice Department weighed in on a years-long legal battle between the Federal Trade Commission and Qualcomm, warning that the outcome in the case could hurt the ability of US companies to compete in 5G wireless technology. The Federal Trade Commission first sued Qualcomm in Jan 2017, claiming the maker of mobile phone technology violated antitrust rules in its licensing agreements with phone manufacturers. Qualcomm fought the charges at trial in Jan 2019, and US District Judge Lucy Koh has yet to make a ruling in the case. While the Justice Department did not argue directly against the merits of the FTC’s case, the filing could pit the two federal agencies against one another in a philosophical battle over how the inventors of new technology should be compensated, and how best to incentivize new technological development. The Justice Department said May 2 that, should Judge Koh rule in the FTC’s favor, it does not want the judge to make an immediate decision on the “remedies” in the case, or how Qualcomm should be punished for allegedly violating antitrust rules. Rather, the Justice Department wants the judge to hold hearings first, so that various parties can argue the best course of action. “There is a plausible prospect that an overly broad remedy in this case could reduce competition and innovation in markets for 5G technology and downstream applications that rely on that technology,” the Justice Department wrote in its filing.

House Armed Services Chairman Adam Smith (D-WA) confirmed that anxiety over Chinese telecom giants’ wireless advances could creep into House lawmakers’ must-pass defense policy legislation. “There might be a couple things on 5G that we include,” said Chairman Smith. “Concern about Huawei and ZTE’s involvement in making sure we have domestic capability to build the infrastructure necessary.” Lawmakers “haven’t worked out the details yet.” One challenge: The Senate may be less inclined to follow suit. Senate Armed Services Chair Jim Inhofe (R-OK) doubts 5G security becomes part of the Senate defense bill, saying “people are jealously holding onto that jurisdiction.”
CTIA, the wireless industry trade group, called the recent 5G study presented to the Defense Department a “missed opportunity to collaborate” and contended it includes flawed information about the technology, in a letter to Acting Defense Secretary Patrick Shanahan. The study from the Defense Innovation Board warned about the potential for Chinese dominance in 5G and recommended the Pentagon explore sharing its mid-band spectrum with wireless operators. It also suggested the US was wrongly focused on high-band spectrum for 5G when the rest of the world is making lower-frequency airwaves available for next-gen networks. CTIA said the study would have benefited from outreach to the wireless industry. While acknowledging that midband is necessary for 5G, CTIA said the US approach to supply a mix of airwaves is the right one, and that efforts to free up midband airwaves should be geared toward exclusive licenses — not sharing models.

Tech giants have long tinkered with ways to grow outside the core businesses they dominate. Now those efforts are becoming urgent. A confluence of forces is behind Big Tech’s business-model ferment. Blowback over privacy abuses and misinformation threatens ad-driven strategies at Facebook and Google built on harvesting people’s information and maximizing the time they spend glued to the internet. The smartphone, which underpinned so much of the tech industry’s boom over the past decade, is maturing, with incremental innovation and flagging sales. And the law of large numbers, combined with the tech industry’s history of upstarts leapfrogging incumbents on innovation, compels executives to seek out new places to disrupt, lest they themselves be disrupted.

Rep. Alexandria Ocasio-Cortez (D-NY), the progressive firebrand whose rebukes of the tech sector drew headlines on the 2018 campaign trail, supports the outlines of Sen. Elizabeth Warren’s (D-MA) sweeping proposal to break up tech firms like Amazon and Facebook. “The idea itself is something that I am supportive of because taking an antitrust approach I believe is absolutely relevant and it’s appropriate to take,” said Rep Ocasio-Cortez. Amazon’s role as “both the marketplace, producer, seller … creates an antitrust issue,” she said. Rep. Ocasio-Cortez supports breaking up Facebook, though she declined to chart out a path for doing so. “Facebook as a basic communications platform while also selling ads and also being a surveillance platform, I think those functions should be broken up, but how that gets levied and how that gets approached is what we need to take a fine-tooth comb at.”
Warren’s proposal has been put to a number of 2020 Democratic candidates, with all who have spoken out thus far largely resisting the plan. But Ocasio-Cortez’s remarks signal a dose of support for it among the party’s surging left flank. The freshman lawmaker said she has yet to explore legislation on tech and antitrust, but indicated it’s a future area of interest. “I think what I’ve been doing more has been getting more overall briefs on this space from academic and legal perspectives,” she said, adding: “It’s something I’ve definitely been keeping an ear on the ground for.”

Facebook’s announcement in late April that it had set aside $3 billion to $5 billion to settle claims that it mishandled users’ personal data suggested a strong consensus by federal regulators that the social media giant needed to be held accountable. But the reality behind the scenes at the Federal Trade Commission is far more complicated, reflecting the politics and give-and-take of the negotiations. The FTC’s five commissioners agreed months ago that they wanted to pursue a historic penalty that would show the agency’s teeth. But now, the members are split on the size and scope of the company’s punishment. Along with disagreement about the appropriate financial penalty, one of the most contentious undercurrents throughout the negotiations has been the degree to which Mark Zuckerberg, Facebook’s chief executive, should be held personally liable for any violation of a 2011 agreement.
The division is complicating the final days of the talks.

Apparently, Facebook has told the Federal Trade Commission it is willing to submit to greater oversight of its data-collection practices — from the launching of new services to the decisions of its top executives — in order to end a wide-ranging federal probe into a series of privacy abuses that came to light in 2018. The changes would accompany a record-breaking, multi-billion-dollar fine that the FTC has considered levying against Facebook. Under such a settlement, Facebook would have to complete a more rigorous privacy review of new products and services before launching them. The company would have to document its decisions, and its efforts to anticipate potential privacy pitfalls, which would help the FTC assess if the social-networking giant fully weighed the effects of its data-collection practices on users, the person said. Facebook also would take a more active role in policing third-party app developers, reviewing their offerings and ensuring that they comply with Facebook’s own rules.

Advocates and experts are worried that an Amazon-owned mobile app, used by owners of its Ring security cameras to upload videos for neighbors to see, could entrench racial discrimination and violate people's privacy. The app, called Neighbors, is striking deals to partner with police departments across the country. Recently, journalists on Twitter noticed Ring was hiring an editor — prompting concerns that Amazon was stoking community fears to sell security systems, as Amazon bought Ring in 2018. People with and without Ring cameras can download the Neighbors app. It features a feed where users can post videos and photos from their cameras, file reports of activity they think is suspicious, and read crime reports from the app's “News Team.” The application partners with law enforcement, allowing them to post alerts to solicit possible video evidence useful to their investigations through a platform.

Heralded as the world’s toughest watchdog of Silicon Valley technology giants, Europe has clamped down on violent content, hate speech and misinformation online through a thicket of new laws and regulations over the past five years. Now there are questions about whether the region is going too far, with the rules leading to accusations of censorship and potentially providing cover to some governments to stifle dissent. The unintended consequences may be compounded as European governments pursue more laws and policies to restrict what communication can be shared online. With the growing body of European legislation, “there will be a lower standard for protection of freedom of expression,” said David Kaye, a University of California, Irvine, law professor who the United Nations appointed to spotlight government efforts to restrict free speech. He added that Europe’s rules erode what had been a shared belief among the United States and other Western democracies to avoid censoring social media posts, YouTube videos, discussion forums and other internet content.
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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