Monday, July 15, 2019
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Charter Settlement in New York
FTC Approves Roughly $5 Billion Facebook Settlement
FCC Activates Disaster Information Reporting for Tropical Storm Barry
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- The US government is fining Facebook $5 billion for privacy violations, and Wall Street thinks that’s great news | Vox
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Facebook Dodged a Bullet From the FTC It Faces Many More | New York Times
- Public Knowledge Criticizes Reported $5 Billion Facebook Settlement | Public Knowledge
- Nilay Patel: Facebook’s $5 billion FTC fine is an embarrassing joke | Vox
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The New York State Public Service Commission approved an agreement with Charter Communications (known as Spectrum) to resolve disputes over the Commission’s network expansion condition that was contained in the Commission’s approval of the company’s merger with Time Warner Cable in 2016. Under the terms of the agreement, Charter will expand its network to provide high-speed broadband service to 145,000 residences and businesses entirely in Upstate New York and will pay an additional $12 million to expand broadband service to additional premises. Under the terms of the settlement:
- Charter will complete the expansion of its existing network to pass 145,000 addresses entirely in Upstate New York. This expansion will not include New York City addresses, which the company had previously planned to include in an earlier buildout plan. To date, Charter has passed approximately 65,000 of the required 145,000 addresses. To comply with the settlement, the Department estimates that the company will invest more than $600 million, more than double the public benefit value estimated by the Commission in its 2016 merger approval.
- Charter’s expansion will be completed by September 30, 2021, in accordance with a schedule providing frequent interim enforceable milestone requirements, with corresponding reporting and accountability.
- Charter will also pay $12 million for additional broadband expansion projects at locations to be selected by the Department of Public Service and the New York State Broadband Program Office. Of the $12 million payments, $6 million will be administered by the New York State Broadband Program Office and $6 million will be paid into an escrow fund for work that will be completed by Charter at the State’s direction.
The Havasupai tribe is falling behind in education, health, and emergency needs because, like many rural communities, it lacks affordable, reliable and high-speed broadband, a tribal councilwoman told the House Agriculture Committee. Ophelia Watahomigie-Corliss was one of several witnesses who said rural areas are “in jeopardy” of being left behind without the high-speed internet access of broadband, which is used for everything from telemedicine to distance learning to up-to-the-minute market reports for farmers. “Community members can better their lives and their education through future broadband expansion,” Watahomigie-Corliss said. “These services that ordinary Americans have been using for the past 20 years are still not a reality for my entire community, but this is the first glimmer of hope we have seen for decades,” she said of gain the tribe has made recently after decades of effort. The Havasupai are among 24 million Americans in rural communities that lack infrastructure for high-speed broadband that is “critical to survival.”
Sens Shelley Moore Capito (R-WV), Brian Schatz (D- HI), Jerry Moran (R-KS), and Jon Tester (D-MT) urged the Federal Communications Commission to take specific, concrete steps to improve the accuracy of broadband coverage maps. Their letter to FCC Chairman Ajit Pai encourages the FCC to look at legislative proposals introduced recently in Congress that include reforms requiring wired, fixed wireless, and satellite broadband providers to submit data like “shapefiles” that is more granular and precise to the commission. “[The proposals Congress has already introduced] would provide the FCC with an effective framework to replace its flawed census block-based system. We appreciate the FCC’s consideration of our suggestions for ways to improve its broadband data collection and reporting initiative, and look forward to working with you to close the digital divide,” they wrote.
T-Mobile, Qualcomm Technologies and Ericsson have completed what they say is the first 5G low-band data session on a commercial 5G modem. The 5G 600 MHz session was conducted at T-Mobile’s lab in Bellevue (WA). The 600 MHz spectrum band is what T-Mobile will use for its nationwide 5G rollout. “This is a key step toward achieving our vision of 5G for All,” said T-Mobile CTO Neville Ray. “This modem will power devices that tap into the 600 MHz low-band spectrum we’ll use to blanket the country with 5G."
Apparently, the Federal Trade Commission voted to approve a roughly $5 billion settlement with Facebook over a long-running probe into the company’s privacy missteps. The 3-2 vote by FTC commissioners broke along party lines, with the Republican majority lining up to support the pact while Democratic commissioners objected. The matter has been moved to the Justice Department’s civil division and it is unclear how long it will take to finalize. Justice Department reviews are part of the FTC’s procedure but typically don’t change the outcome of an FTC decision. A settlement is expected to include other government restrictions on how Facebook treats user privacy. Facebook said April 24 that it was expecting to pay up to $5 billion to settle the probe. A resolution was bogged down by a split between Republicans and Democrats on the FTC, with the Democrats pushing for tougher oversight of the social-media giant. With Facebook having reported $15 billion in revenue last quarter, the $5 billion fine would amount to one month's worth of revenue.
The FTC investigation began more than a year ago after reports that personal data of tens of millions of Facebook users improperly wound up in the hands of Cambridge Analytica, a data firm that worked on President Donald Trump’s 2016 campaign. The FTC investigation centered on whether that lapse violated the 2012 consent decree with the agency in which Facebook agreed to better protect user privacy.
Beyond the circus-like atmosphere of the White House social media summit, the conference had serious implications for Silicon Valley. It highlighted how President Donald Trump's attacks on Big Tech are creating more political jeopardy for the tech companies in Washington:
- The White House says more scrutiny is on the way, as tech companies will be required to attend a future White House event.
- Congressional Republicans' efforts might start with Sen Marsha Blackburn (R-TN), as she's moving ahead with a task force to study tech giants and "find answers to the issues of privacy and data security", as well as competition.
- Privacy concerns about Big Tech: Conservatives heard from House Minority Leader Kevin McCarthy (R-CA), a longtime critic of tech giants' content moderation decisions. But he touched not just on bias but privacy, reiterating a belief that consumers should own their personal data -- and that Congress may need to legislate.
- Sen Josh Hawley (R-MO) got air time for his push to overhaul Section 230, a legal shield that protects tech platforms from liability for content people post on their sites.
- But the summit could make it harder for Republicans to work across the aisle on tech isues. Democrats sharply criticized the Trump administration for inviting controversial conservative provocateurs who are known for targeting President Trump's opponents with inflammatory tweets and misleading videos.
President Donald Trump’s “social media summit” probably marks the beginning, not the end, of Silicon Valley’s political headaches, opening the door for the White House and its conservative allies to intensify their attacks on Facebook, Google and Twitter over allegations that they exhibit political bias. President Trump coupled his complaints about the tech industry with a promise to summon top tech executives to Washington in the coming weeks and a threat to unveil new regulations targeting the way social media sites moderate content. “Something is going to be done,” President Trump said July 12, the day after the summit, blasting the companies as “absolutely, in my opinion, 100 percent crooked.” Exiting the summit, some conservatives also pledged to be even more vigilant, vocal and aggressive about what they perceive as attempts by Facebook, Google and Twitter to silence their voices, threatening continued clashes between the tech industry and its critics ahead of the 2020 presidential election. July 12, President Trump suggested that he’d clashed with one of the social-networking companies, telling reporters he had “something happen this morning” but declining to provide details.
In its ninth annual E-Rate Trends Report, compliance firm Funds For Learning finds the Federal Communications Commission's connectivity discount program for schools and libraries remains crucial to providing broadband access for many, with 88% of applicants expecting bandwidth needs to grow in the next three years. Among the findings: 82% of E-rate applicants report that home internet access for students or library patrons remains insufficient, 70% find that the program's competitive bidding rules are lowering internet service prices, and 88% report Wi-Fi is "extremely important" to meeting their goals, up from 79% in fiscal year 2018. "Like the technology it supports, the E-rate program must continue to evolve and mature," wrote Funds For Learning CEO John Harrington. "The past success of this program is not happenstance and its future success should not be taken for granted. New regulations currently being considered hold the opportunity to increase or decrease the program’s efficacy, and the results will impact millions of lives."
The Federal Communications Commission has announced the activation of the Disaster Information Reporting System (DIRS) in response to Tropical Storm Barry. DIRS is a voluntary, web-based system that communications providers, including wireless, wireline, broadcast, cable and Voice over Internet Protocol providers, can use to report communications infrastructure status and situational awareness information during times of crisis. Communications providers are reminded that for providers that participate in DIRS, the separate Network Outage Reporting System (NORS) obligations are suspended for the duration of the DIRS activation with respect to outages in the counties where DIRS has been activated. Reports are requested at 10:00 am on July 14, 2019, and every day after that by 10:00 am until DIRS is deactivated.
Stories From Abroad
Can competition-enhancing regulation bridge the quality divide in Internet provision?
There is a growing divide in Internet quality of service (QoS) between developed and developing countries. With a panel data of 160 countries for the years 2008-2016, we examined whether the adoption of more pro-competition regulation can narrow this quality divide. Internet quality of service, measured as average connection speed, increased by three times greater in developed compared to developing countries during the period studied. We found that a unit increase in the pro-competition score increased the average connection speed in developed but not in developing countries. This finding suggests that simply adopting more pro-competition rules will not narrow the quality divide between developed and developing countries. This further suggests that bright line rules in the form of minimum quality standards may be a more effective policy for improving Internet QoS in developing countries.
Europe is host to a fiercely competitive environment of stakeholders all wanting to prove they can deploy 5G first. Obstacles such as spectrum auctions in some countries remain, but the region's networks have shown that when necessary, they can accelerate their own plans to catch up and keep pace with industry leaders around the world. One trend so far among European networks is the bundling of unlimited data with extra products or services, such as home broadband, or unlimited data reserved specifically for gaming or video streaming. The US has been doing this, too -- but most European networks aren't asking customers to pay a massive premium for upgrading from 4G to 5G.
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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