Daily Digest 5/8/2018 (Unbundling Rears Its Ugly Head)

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Telecommunications/Internet

USTelecom Says Telecom Unbundling Regulations are Outmoded; Competitors Say They Need Those UNEs

USTelecom has filed a forbearance petition with the Federal Communications Commission, asking the commission to eliminate a requirement for larger, incumbant telephone companies to offer unbundled network elements (UNEs) at regulated prices. USTelecom President and CEO Jonathan Spalter said telecom unbundling regulations currently enable competitive carriers to lease network elements – typically the copper connection between the customer and the telco central office – at “extremely low rates.” INCOMPAS, an association that represents competitive carriers, sees it differently. According to INCOMPAS, easing unbundling regulations would hamper, not hasten, broadband deployment and would lead to higher prices for consumers and businesses.

AT&T will ask Supreme Court to cripple the FTC’s authority over broadband

In an attempt to win a government lawsuit over its throttling of unlimited data plans, AT&T will appeal a ruling to the Supreme Court. The Federal Trade Commission sued AT&T in October 2014 in US District Court in Northern California, alleging that AT&T promised unlimited data to wireless customers and then throttled their speeds by as much as 90 percent. In response, AT&T argues that the FTC has no jurisdiction over any aspect of AT&T's business because the FTC lacks authority to regulate common carriers. AT&T won a key ruling in the case in August 2016, but the most recent federal appeals court decision went in favor of the FTC. That's why AT&T is headed to the nation's top court. An AT&T victory could leave many ISPs in a regulation-free zone. The Federal Communications Commission in December 2017 voted to eliminate net neutrality rules and relinquish its authority to regulate ISPs as common carriers. One of the FCC's justifications for deregulating the broadband market was that the Federal Trade Commission can force ISPs to uphold their net neutrality promises. But an AT&T court victory could eliminate the FTC's authority over the Internet services offered by AT&T, Verizon, and other traditional phone companies. Consumer advocacy groups in 2017 urged FCC Chairman Ajit Pai to delay the anti-net neutrality vote until after the AT&T/FTC case is finished, but he refused to do so.

Why We Need Net Neutrality Legislation, and What It Should Look Like

A key reason for the contentious fight over net neutrality regulation, and the source of its partisan strife, is that the way we classify broadband Internet access for legal purposes could have weighty long-term implications: Do we want a broadband system more like a public utility under Title II of the Communications Act, or do we want to rely on private companies to drive the evolution of broadband, with relatively light oversight from the Federal Trade Commission (FTC)? But this is a false dilemma predicated on outdated law, and it has resulted in a ping-ponging of broadband regulations. Congress can and should act to end this “long national nightmare” that is the net neutrality war. There is ample room for a bipartisan compromise on net neutrality that would not only lock in noncontroversial ex ante protections and finally end the absurd back-and-forth on Federal Communications Commission (FCC) jurisdiction, but also secure funding to help close the digital divide with programs that promote digital literacy and broadband adoption—while also accelerating deployment in rural areas. With the Restoring Internet Freedom Order having hit the Federal Register, broadband Internet access will once again be considered an “information service” under the law—just as it was from 1998 to 2016.  With it comes a host of implications, the most important of which is the FCC in effect deciding Congress has not given it the authority to act as the primary regulator of broadband—while in the same process repealing the 2016 net neutrality rules grounded in common carriage. Net neutrality legislation should:

  • Clarify that broadband Internet access service is not a “telecommunications service” under Title II of the Communications Act.
  • Put widely agreed upon open Internet protections, including no-blocking, no throttling, and transparency requirements, on firm legal ground. 
  • Allow pro-competitive traffic differentiation for applications that require it, while preventing anticompetitive abuses of prioritization.
  • Give the FCC reasonable, but bounded, jurisdiction to enforce open Internet rules. 
  • Expand the scope and funding of existing digital-literacy and broadband-adoption programs.
Privacy

Hot US Import: European Regulations

Wireless speaker company Sonos, Apple, Facebook, and Twitter  have updated their global privacy rules in anticipation of the European Union's General Data Protection Regulation (GDPR). GDPR is the latest sign of the EU’s growing power in global regulation. With increasing frequency, EU rules targeting industries within the bloc—from consumer products to financial services—have set international benchmarks. Some are taken piecemeal, as with GDPR, from which non-EU companies are cherry-picking elements. Other rules have become de facto world-wide references.

How the EU’s General Data Protection Regulation empowers digital civic engagement

[Commentary] The European Union’s General Data Protection Regulation (GDPR) represents an important step forward for envisioning a civic life where citizens are empowered not only as data producers but also data owners. Any conversation of leveraging data, technology, or innovation to enhance civic life or governance should seriously consider how such a framework could more deeply empower citizens in the United States. Several core components of the GDPR are relevant for broader governance and civic conversations around the world. First, having a clear sense of who collects your information and what information they collect. Second, having a right to be forgotten. Third, enhancing data protection responsibilities. Ultimately, the conversation surrounding the GDPR needs to seriously consider the value that citizens place in their data. 

Even Privacy Advocates Are Tracking You Online

The primary purpose of Californians for Consumer Privacy, an advocacy group formed by San Francisco real estate developer Alastair Mactaggart, is to push for a ballot initiative adding restrictions on companies that profit from the collection of personal data.But each time someone visits the organization's website, software gleans what information it can about her, then sends that information to Facebook, including her IP address, what web pages she was on before and after visiting, and so on. At this point, both the visitor and the website have basically lost control of what happens with that information. That means the group has something in common with a lot of other sites. At least 79 percent of websites globally have one or more trackers that collect data on their users’ online behavior. Over 21 percent have more than 10 trackers. Google trackers run 60 percent of the time any web page loads; Facebook’s run 27 percent of the time. Both companies have trackers running on CAPrivacy.org, because the group put them there. It may be hard to find a clearer testament to how entrenched such tracking has become as the default setting of the entire internet. 

Content/Data

The Santa Clara Principles on Transparency and Accountability in Content Moderation

The Santa Clara Principles offer guidance to internet platforms on how to provide users with meaningful due process when their posts are taken down or their accounts are suspended, and to help ensure that the enforcement of company content guidelines is fair, unbiased, and respectful of users’ free expression rights. The three principles urge companies to:

  • Publish the numbers of posts removed and accounts permanently or temporarily suspended due to violations of their content guidelines;

  • Provide clear notice to all users about what types of content are prohibited, and clear notice to each affected user about the reason for the removal of their content or the suspension of their account; and

  • Enable users to engage in a meaningful and timely appeals process for any content removals or account suspensions.

Google Becoming Gatekeeper Of Data With DoubleClick ID Restrictions

Google is removing anonymized and encrypted user IDs from DoubleClick data transfer starting May 25, to align its data practices with the European Union’s General Data Protection Regulations (GDPR). The changes apply to all companies using the DoubleClick ID feature. The data remains accessible to advertisers, but the move makes Google the gatekeeper of the data to prevent data sharing and requires advertisers to use its platforms and tools.

First Lady Melania Trump Rolls Out ‘Be Best,’ a Children’s Agenda With a Focus on Social Media

First Lady Melania Trump said she would focus her official effort as first lady on teaching children to put kindness first in their lives, particularly on social media. She unveiled a program called “Be Best,” which she said would tackle opioid abuse, social media pressures and mental health issues among young people. The program will primarily repackage projects that already exist, including an initiative by the National Safety Council to encourage people to be proactive with talking to their doctors about opioid abuse, and guidelines distributed by the Federal Trade Commission on children’s social media activity.

Television

TV Royalty: How Patents Could Help Sinclair Rule the Broadcasting Market

The broadcasting market is on the brink of a major shakeup, and Sinclair is already positioned as a primary beneficiary. The new technology driving these fundamental shifts is known as Next Generation TV, a new transmission standard that promises many new features including ultra-high definition, immersive audio, and enhanced emergency alerts. The new transmission standard serves as an important step forward for the broadcasting industry, allowing it to keep pace with online streaming and over-the-top services. Sinclair, through a subsidiary, owns key patents for components that serve as the basis for this new broadcast transmission standard. These patents give Sinclair substantial market power and the potential to collect billions in royalties from other broadcasters, equipment manufacturers, and cable companies that are looking to bring their customers the benefits of Next Generation TV. 

Policymakers

Lawmakers Request Special Counsel Investigate FCC Commissioners' CPAC Appearance

House Commerce Committee Ranking Member Frank Pallone, Jr. (D-NJ) and Subcommittee on Communications and Technology Ranking Member Mike Doyle (D-PA) sent a letter to the Office of Special Counsel requesting an investigation into all three Republican Federal Communications Commission (FCC) Commissioners regarding their involvement with the 2018 Conservative Political Action Conference (CPAC). In March, Reps Pallone and Doyle asked the Republican Commissioners about their decision to attend CPAC, including whether they sought advice from FCC ethics officials before participating in CPAC and allowing organizers to use their names and photos to promote the event. However, the Republican Commissioners declined to respond directly and instead the FCC General Counsel replied in a letter that was both non-responsive and appeared to misunderstand the Hatch Act. Reps Pallone and Doyle note that the General Counsel’s letter was insufficient for three reasons. First, it was legally misleading because the General Counsel selectively quoted sections of the Special Counsel’s Hatch Act guidance, leaving out sections directly relevant to the Commissioners’ actions. Second, it was factually misleading in its failure to mention that Commissioner O’Rielly made prohibited partisan political remarks. Third, the letter was incomplete because it failed to address a number of the questions from Reps Pallone and Doyle, and provided no documentary evidence supporting its assertions. 

Mergers are spiking, but antitrust cop funding isn't

A wave of mega-mergers touching many facets of daily life, from T-Mobile’s merger with Sprint to CVS’s purchase of Aetna, will test the Justice Department's and Federal Trade Commission’s ability to examine smaller or more novel cases, antitrust experts say. More mergers are underway now than at any point since the recession. The total number of transactions reported to the federal government in fiscal year 2017, and not including cases given expedited approval or where the agencies couldn't legally pursue an investigation, is 82% higher than the number reported in 2010 and 55% higher than the number reported in 2012. Funding for antitrust officials who weigh the deals hasn’t kept pace. The funding for the Department of Justice’s antitrust division has fallen 10% since 2010, when adjusted for inflation. That's in line with the broader picture: not adjusting for inflation, the Department's overall budget increased just slightly in 2016 and 2017. Funding for the Federal Trade Commission has fallen 5% since 2010 (adjusted for inflation).

via Axios
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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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