Daily Digest 7/18/2018 (A Republican Path Forward on Net Neutrality)

Benton Foundation

Rural digital inclusion, FTC Oversight, and FCC Commissioner Carr on today's agenda

Net Neutrality

Rep. Mike Coffman (R-CO) introduces bill to reinstate net neutrality rules

Rep. Mike Coffman (R-CO) introduced a bill that would codify network neutrality regulations into law. Titled The 21st Century Internet Actthe measure would institute the basic outlines of the Federal Communication Commission’s 2015 Open Internet order, which banned the throttling and blocking of content as well as harmful paid prioritization practices. In an even more surprising move, however, the Republican congressman has signed on to a Democrat-led effort to reinstate the net neutrality rules that the FCC voted to repeal in December 2017. The 21st Century Internet Act aims to restructure the current framework by which the internet has been governed since the ‘90s. Former net neutrality debates have focused around which Telecommunications Act classification best fits broadband. Coffman’s bill moves past this argument by amending the 1934 Telecommunications Act and adding the new Title VIII. This new classification would “permanently codify into law the ‘four corners’ of net neutrality” by banning providers from controlling traffic quality and speed and forbidding them from participating in paid prioritization programs or charging access fees from edge providers. On top of providing stable ground for net neutrality rules to be upheld in the future, the legislation also makes it illegal for providers to participate in “unfair or deceptive acts or practices.” It directs the FCC to investigate claims of anticompetitive behavior on behalf of consumers after receiving their complaints. Transparency requirements are heightened for providers as well, as companies must publicly disclose information regarding their network practices to allow consumers to “make informed choices regarding use of such services.”

via Vox

Gigi Sohn Statement on Rep. Coffman’s Signing of the Net Neutrality Discharge Petition

I applaud Rep. Coffman for signing the net neutrality discharge petition. The Joint Resolution of Disapproval of the FCC’s December 14, 2017 net neutrality repeal order is the fastest and best way to restore FCC authority to protect consumers and competition in the broadband market. Surely his constituents will appreciate his leadership in taking this important step. It is now time for Rep. Coffman’s House Republican colleagues to join him in signing the discharge petition so that the chamber can vote on the Joint Resolution of Disapproval.  Signing the discharge petition shouldn’t be a hard  – every recent poll has shown that the 2015 net neutrality rules are extremely popular across party lines. While I recognize Rep. Coffman’s and his staff’s hard work on stand-alone legislation, that bill has no chance of advancing this Congress. The public cannot wait – it’s right to a free and open Internet can best be restored through the Joint Resolution.

Netflix's Hastings: net neutrality has won as a consumer expectation

Netflix chief Reed Hastings — who has been an ardent and vocal supporter of net neutrality rules to ensure service providers don’t discriminate against internet content companies — said the US reversal on net neutrality won’t have an impact on the streamer’s business. “Around the world, net neutrality has won as a consumer expectation,” Hastings said. “I would say the net neutrality advocates have won the day, in terms of those expectations, so we don’t see any changes of that in the US or other countries.”

More Broadband/Internet

Lawmakers split over how to expand rural broadband

Lawmakers sparred over ways to bring more investment to rural broadband services. Chairman Marsha Blackburn (R-TN) said government needs to complement private investment not compete against it. She criticized a bill sponsored by Rep. Anna Eshoo (D-CA) and others, the Community Broadband Act, that would allow local communities to invest money in building their own networks. Chairman Blackburn said the bill "causes me concern" because she thinks it "would threaten to undo much of the progress that is being made across the country.” Rep Eshoo said state legislatures are “screwing” local communities that want to invest in their own networks. She said many Americans, even those in some parts of Silicon Valley have trouble accessing broadband. “When at least a third is either underserved or not served in the second decade of the 21st century, that’s a major issue for our country,” she said. Rep. Frank Pallone (D-NJ) blamed Republicans for the lack of action on infrastructure: “Unfortunately, the administration and my Republican colleagues have placed infrastructure legislation on the backburner behind its tax scam that benefits large corporations and the wealthiest few”

Chairman Blackburn Eyes Final Broadband Push

House Subcommittee on Communications and Technology Chairman Marsha Blackburn(R-TN) is looking to consolidate a number of broadband proposals under the banner of National Telecommunications and Information Administration (NTIA) reauthorization. “I would very much like to get this done before the August break. I don’t know if that is going to be a possibility, but I sure would like to be moving this out.” Chairman Blackburn also expressed interest in reviewing the Senate’s recent bipartisan 5G wireless legislation, S. 3157, as well as the Federal Communications Commission’s “one touch make ready” proposal, aimed at easing deployment of broadband infrastructure on utility poles, which is up for a commission vote Aug. 2. She isn’t ruling out a hearing on the video marketplace later in 2018, as some telecom industry officials and lawmakers have sought. If lawmakers achieve their broadband objectives, “I may turn back to the video marketplace in September,” she said.

SHLB Urges NTIA to Collect and Publish Anchor Institution Broadband Data

The Schools, Health & Libraries Broadband (SHLB) Coalition,  a broad-based membership organization that includes anchor institutions, broadband providers and public interest groups, filed comments with the National Telecommunications and Information Administration (NTIA) suggesting that the agency use new broadband availability funding to collect and publish data about anchor institution broadband. Congress appropriated $7.5 million to the NTIA  to improve broadband mapping. To determine how it can use this funding most wisely, the agency asked for comment on “on actions that can be taken to improve the quality and accuracy of broadband availability data, particularly in rural areas.” 

The SHLB Coalition made two key suggestions for how the NTIA might use these funds:

  1. To collect, publish and display information about the quality of broadband available to community anchor institutions to determine if the U.S. is meeting Goal #4 in the National Broadband Plan.
  2. To validate (from a consumer’s perspective) the broadband availability data provided by broadband providers to the FCC by surveying a sample of anchor institutions and residential consumers.

Consumer Preferences Tilting Toward Mobile Broadband

The Internet Innovation Alliance (IIA) commissioned an independent market research survey to determine the preferences of consumers and identify the types of activities consumers engage in when they go online. A leading independent polling and market research firm, Civic Science, designed and conducted a comprehensive, statistically-valid survey of at least 10,0000 consumers in the United States in June 2018. The results of the Civic Science Consumer Preference Survey show that:

  • Consumers express no clear preference for how they access the Internet. Almost as many consumers prefer to access the Internet through mobile as through cable modems. In fact, more consumers prefer to access the Internet through their mobile devices than do those who prefer the fixed broadband means of fiber and digital subscriber line (DSL) service combined. And furthermore, 1 in 5 U.S. consumers expressly state that they have “no preference” for how they access the Internet. Fully 43% of all respondents report a preference for mobile access or report no preference as compared to 47% expressing a fixed broadband preference, demonstrating clearly that in the public view, there is essential equivalence between mobile and fixed alternatives.
  • Consumers are willing to switch to mobile-only Internet access. Millions of consumers across all kinds of demographic groups have already done so – younger consumers, older consumers, white consumers, minority consumers, consumers living in cities and consumers living in rural areas. And contrary to the FCC’s conclusion in January 2016, concerns about affordability are not the main reason consumers are reluctant to switch.
  • A clear majority of consumers now use mobile devices for “bandwidth and data-intensive applications” like streaming multimedia content – including watching news and sports, as well as streaming movies and television shows from services like Netflix, Hulu, YouTube, and so forth.
  • Mobile devices now play an important role in completing homework assignments and applying for jobs. Nearly 1 in 2 U.S. households with children have used mobile devices to complete homework assignments in the past year. And 1 in 4 US consumers have used mobile devices to apply for a job in the past year.

Verizon to expand high-speed internet in New York

Verizon eached a deal with state regulators to expand its high-speed internet services in New York and repair its existing telephone infrastructure. The agreement with the state Public Service Commission means Verizon expects to make its high-speed broadband network available to an additional 47,000 households across the state starting in 2018. The deal requires Verizon to expand fiber and hybrid fiber-copper networks to parts of upstate, the Hudson Valley and Long Island. Verizon will also upgrade its existing copper system in New York City and remove 64,000 double telephone poles deemed excessive throughout the state over a four-year period.

Ownership

Why startups aren't pushing the feds to break up Big Tech

Today’s tech startups have largely stayed out of the debate over whether antitrust law should be used to humble — and possibly break up — giants like Facebook, Google, and Amazon. Startups are often in position to lead the antitrust charge against major competitors. But entrepreneurs face a dilemma: If they go running to regulators, they have to admit they’re in danger and tick off a powerful player in their world. If they do nothing, they risk bleeding out. Tech giants have immense leverage over startups.

via Axios

Why Platform Regulation Is Both Necessary and Hard

[Analysis] As digital platforms have become increasingly important in our everyday lives, we’ve recognized that the need for some sort of regulatory oversight increases. We have reached the point where we need sector-specific regulation focused on online digital platforms, not just application of existing antitrust or existing consumer protection laws. When platforms have become so central to our lives that a change in algorithm can dramatically crash third-party businesses, when social media plays such an important role in our lives that entire businesses exist to pump up your follower numbers, and when a multi-billion dollar industry exists for the sole purpose of helping businesses game search engine rankings, lawmakers need to stop talking hopefully about self-regulation and start putting in place enforceable rights to protect the public interest. That said, we need to recognize at the outset that a lot of things make it rather challenging to figure out what kind of regulation actually makes sense in this space. Although Ecclesiastes assures us “there is nothing new under the sun,” digital platforms combine issues we’ve dealt with in electronic media (and elsewhere) in novel ways that make applying traditional solutions tricky. Before diving into the solution, therefore, we need to (a) define the problem, and (b) decide what kind of outcome we want to see.

[Harold Feld]

Elections

NSA and Cyber Command to coordinate actions to counter Russian election interference in 2018 amid absence of White House guidance

National Security Agency Director Paul Nakasone -- the head of the nation’s largest electronic spy agency and the military’s cyberwarfare arm -- has quietly directed the two organizations to coordinate actions to counter potential Russian interference in the 2018 midterm elections. The move is an attempt to maximize the efforts of the two groups and comes as President Donald Trump said Russian President Vladi­mir Putin was “extremely strong and powerful” in denying Russian involvement in the presidential election two years ago. It is the latest initiative by national security agencies to push back against Russian aggression in the absence of direct guidance from the White House on the issue. The agencies are working within their own authorities, but “the lack of presidential guidance to address this as a national problem impedes the ability” to carry out a more robust and effective effort — one that aligns resources and results. 

Most Americans want to make it easier — not harder — to vote (Washington Post)

Politicians are using fake news schemes to get elected

Politicians on the left and right are manipulating the news to bolster their election efforts with fake headlines, websites, and articles. Politicians are harnessing internet stories and websites to mislead voters because users are less discerning over what is real and fake online. Media manipulation has always been a part of the political playbook, but technology has enabled politicians to take the practice a step further by changing or mimicking real stories and news outlets to mislead voters.

via Axios
Content

House Judiciary Committee Examines Social Media Content Filtering Practices

Facebook, Google and Twitter on Tuesday sought to defend themselves against accusations from Republican lawmakers who say the tech giants censor conservative news and views during a congressional hearing that devolved into a political sniping match. Lawmakers had convened the nearly three-hour session before the House Judiciary Committee to explore the “filtering” practices of major social media companies, where a mix of human reviewers and powerful yet secret algorithms review online content — a process meant to stifle offensive speech that even tech giants admit isn’t perfect. But GOP lawmakers led by the panel’s chairman, Rep. Bob Goodlatte (R-VA), ultimately focused much of their efforts on highlighting what they perceive as bias against those on the political right — a charge that the tech companies repeatedly denied. The line of questioning enraged committee Democrats, including Rep. Jamie Raskin (D-MD), who rebuked Republicans for pushing an “imaginary narrative” of censorship. Rep. Ted Lieu (D-CA) later called it a “dumb hearing.” Many in the party also demanded that Congress focus its time on more pressing issues, including Russia’s efforts to spread disinformation online. For some, that offered an opportunity to assail President Trump. In response, though, tech companies once again sought to stress their neutrality.

Wireless/Mobile

Use of mobile devices for news continues to grow, outpacing desktops and laptops

Mobile devices have become one of the most common ways Americans get news, outpacing desktop or laptop computers. Roughly six-in-ten U.S. adults (58%) often get news on a mobile device, 19 percentage points higher than the 39% who often get news on a desktop or laptop computer, according to a Pew Research Center survey. The share of Americans who often get news on a mobile device is nearly triple the 21% who did so in 2013. At the same time, the portion of Americans who often get news on a desktop has remained relatively stable, with 39% of adults often getting news on a desktop or laptop computer, up just 4 percentage points from 2013. The portion of adults who ever get news on a computer – as opposed to often get news – is about the same as those who ever do so on a mobile device – 88% of Americans ever get news on a mobile device and 84% ever get news on a computer. Overall, 96% of U.S. adults get news online – i.e., ever get news on either a mobile device or computer. The growth in mobile news consumption has been driven by older adults and those with lower incomes, as previous analysis has shown. Young people, however, still outpace their elders. About seven-in-ten adults ages 18 to 29 (71%) often get news on a mobile device, compared with 37% of those ages 65 or older. Moreover, those 65 and older are still more likely to often get news on a desktop than on a mobile device (47% compared with 37%, respectively). This is the only age group more likely to get news on a desktop or laptop computer than on a mobile device.

Stories from Abroad

EU fines Google record €4.3bn over Android

The European Commission has hit Google with a €4.3 billion (~$5.6 billion) fine, imposing a record penalty on the US group for abusing its dominant position in the Android operating system for mobile phones. The decision takes aim at a core part of Google’s business strategy over the past decade, outlawing restrictions on its Android operating system that allegedly entrenched Google’s dominance in online search at a time when consumers were moving from desktop to mobile devices. The commission found that Google had used illegal “tying” methods to force phonemakers to pre-install Google services and apps, such as search and Chrome, as a condition of using Google Play, the smartphone app store. It also determined that mobile operating networks and device manufacturers were also paid anti-competitive financial incentives if they pre-installed Google search and no other rival services. A third leg of the case relates to contractual restrictions that stopped manufacturers from selling phones using rival operating systems developed on the Android open source code. Under such antitrust decisions, Google would be expected to end the illegal practices, forcing amendments to its operations that could have implications for its future standing in the market for mobile and other devices.

More Online

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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