Daily Digest 8/01/2019 (What to Expect When You're Expecting a Net Neutrality Decision)

Benton Foundation
Table of Contents

Broadband/Internet

What to Expect When You're Expecting a Net Neutrality Decision  |  Read below  |  Andrew Jay Schwartzman  |  Analysis  |  Benton Foundation
Disconnected: Seven lessons on Fixing the Digital Divide  |  Read below  |  Jeremy Hegle, Jennifer Wilding  |  Research  |  Federal Reserve Bank of Kansas City
How States Support Broadband Projects  |  Read below  |  Anne Stauffer, Kathryn de Wit  |  Research  |  Pew Charitable Trusts
State Broadband Policy Explorer  |  Read below  |  Research  |  Pew Charitable Trusts
Public Knowledge Files Comments Urging FCC to Drop USF Cap Proposal  |  Read below  |  Phillip Berenbroick  |  Press Release  |  Public Knowledge
TPI Economists Advise a Budget for Universal Service Fund  |  Technology Policy Institute
FCC Announces Comment Due Date of Aug 30, Reply Comments Sept 30 for NRPM on Improving Broadband Competition in MTEs  |  Federal Communications Commission
Fort Collins unveils new details about municipal broadband rollout  |  Read below  |  Jacy Marmaduke  |  Fort Collins Coloradoan

Wireless

T-Mobile, Sprint deal at final major hurdle: State AGs  |  Read below  |  Emily Birnbaum  |  Hill, The
Verizon expands its 5G network to Atlanta, Detroit, Indianapolis, and Washington DC  |  Vox
Altice Mobile Expands Its Wireless Service Deal to T-Mobile 5G Network, Signs Separate Roaming Agreement with AT&T  |  Multichannel News
Shoot First with Snark and Maybe Check the Facts Later: Mistruths and Market Misperception by WSJ Columnist Holman W. Jenkins  |  Rob Frieden

Television/Radio

Justice Department Requires Structural Relief to Resolve Antitrust Concerns in Nexstar’s Merger with Tribune  |  Read below  |  Press Release  |  Department of Justice
Networks Sue to Stop Streaming Service Offering Free TV Feeds  |  Read below  |  Joe Flint, Drew FitzGerald  |  Wall Street Journal
Statement of Gigi Sohn on Broadcast Networks’ Lawsuit Against Locast  |  Gigi Sohn
FCC proposes rules to modernize the Low Power FM Radio Service technical rules to provide more regulatory flexibility  |  Federal Communications Commission

Security/Surveillance

Cisco to Pay $8.6 Million to Settle Government Claims of Flawed Surveillance Tech  |  Read below  |  Katie Benner, Kate Conger  |  New York Times
FBI Wants Tech to Track Social Media for Criminals and Terrorists Before They Act  |  nextgov
Amazon provides marketing scripts to more than 200 police partners to sell its Ring home cameras  |  Ars Technica
FTC Encourages Consumers to Opt for Free Credit Monitoring, as part of Equifax Settlement  |  Federal Trade Commission

Elections

Analysis: Liberal and moderate Democratic candidates disagree on election security, too  |  Washington Post
Analysis: Silicon Valley can breathe a sigh of relief after the July 30 Democratic debate  |  Washington Post
House Oversight Committee seeks documents on secret Customs and Border Protection Facebook groups that ridiculed migrants  |  Washington Post

Platforms

ARA Urges Antitrust Investigations of Big Tech to Include Creators’ Concerns  |  Artist Rights Alliance
Hours after President Trump retweet, Twitter account suspended  |  Hill, The
Op-ed: Are Google and Facebook censoring conservatives? The problem is more widespread than that.  |  Washington Post
Full Fact has been fact-checking Facebook posts for six months. Here’s what they think needs to change  |  Nieman
Analysis: Silicon Valley can breathe a sigh of relief after the July 30 Democratic debate  |  Washington Post

Journalism

Hedge funds have found that they are able to wring profits out of an ailing product: the print newspaper. But for how long?  |  New York Times
Has Your Local Newspaper Closed? Tell Us What Stories Aren’t Being Told  |  New York Times
The Tools for Covering Tech Are the Same as in 2009  |  New York Times

Stories From Abroad

Combating disinformation and foreign interference in democracies: Lessons from Europe  |  Read below  |  Margaret Taylor  |  Analysis  |  Brookings Institution
 
Today's Top Stories

Broadband/Internet

What to Expect When You're Expecting a Net Neutrality Decision

Andrew Jay Schwartzman  |  Analysis  |  Benton Foundation

Every Tuesday and Friday morning at 10 am (Eastern), scores of journalists, activists, and lawyers stare at the website of the U.S. Court of Appeals for the D.C. Circuit’s “Opinions” page, rapidly refreshing their browsers. They are waiting for the court’s opinion in the challenge to the Federal Communications Commission’s 2017 decision repealing its own Obama-era network neutrality rules. Within a few minutes, the court posts new decisions or notes that there will be no decisions that day. The court’s net neutrality decision may come down tomorrow, next week, next month, or several months from now; with the benefit of lifetime tenure, the judges take as long as they feel necessary to write their opinions. Perhaps the most immediate impact of the forthcoming decision will be on the legislative process, as the winning side will have greatly increased leverage in Congress over the next few years. 

[Andrew Jay Schwartzman is the Benton Senior Counselor]

Disconnected: Seven lessons on Fixing the Digital Divide

Jeremy Hegle, Jennifer Wilding  |  Research  |  Federal Reserve Bank of Kansas City

The Kansas City Fed launched a project in early 2018 to outline issues of the digital divide and identify innovative approaches that communities were taking to narrow it. This report provides a summary of what we learned and opportunities for narrowing the divide. It is not intended to be a technical report. It is instead written for non-experts, to provide them with a holistic understanding of the digital divide and its relevance to a variety of community and economic development fields. The people who participated in this project shared their experiences of helping to make the internet available to those left behind. The characteristics of the field—the speed of change, the newness, the populations they assist—helped shape several common themes. The themes reflect the lessons they have learned about what it takes to close the digital divide.

  1. Awareness: Many lack an understanding of the digital divide.
  2. Change: The digital divide will never go away. Ever-changing technology means the digital divide is a moving target.
  3. Rural broadband: New business models and/or public funding are critical to serving unprofitable areas.
  4. Broadband adoption: Work with, not for, the community.
  5. Digital skills: Teaching digital skills is complex, labor-intensive and requires an element of trust.
  6. Equipment: Time and adequate equipment are needed to increase adoption.
  7. Evaluation and collaboration: Stakeholders are hungry to learn from others.

How States Support Broadband Projects

Anne Stauffer, Kathryn de Wit  |  Research  |  Pew Charitable Trusts

As high-speed, reliable internet access becomes increasingly important in modern life, state leaders are seeking ways to fund projects to expand this vital service. Although the mechanisms that states use are fairly consistent—grants and loans, among others—they have different approaches for distributing funds and encouraging investment. This brief explores the ways in which states support broadband deployment projects and what they aim to accomplish.

States often support broadband deployment through grants and loans to internet service providers, nonprofit utility cooperatives, and local governments. The money for these grants and loans comes from sources that fall into three categories: special and general funds, state universal service funds, and other revenue streams. Pew has identified three trends among state goals for broadband expansion projects: 1) Funding is directed to unserved and underserved areas; 2) “Last mile” projects get the most funding; 3) Projects are required to obtain matching funding. Just as there is no one-size-fits-all solution for expanding broadband access, funding and financing broadband deployment is a state-specific enterprise. Many states take multiple approaches to funding their broadband projects, using a combination of grants, loans, tax incentives, bonds, and support from other state agencies. Given such diverse strategies, states should look to one another to find creative ways to expand broadband to those who need it.

State Broadband Policy Explorer

Research  |  Pew Charitable Trusts

The Pew Charitable Trusts’ state broadband policy explorer lets you learn how states are expanding access to broadband through laws. Categories in the tool include: broadband programs, competition and regulation, definitions, funding and financing, and infrastructure access. As you choose categories, a 50-state map illustrates which states have adopted such laws, which includes state statutes related to broadband as of Jan. 1, 2019. Each entry provides a summary of relevant policy as well as links to find the full text. "We wanted to make it accessible to everyone from a legislative staffer to your Aunt Betty who's running a community broadband effort on an island in Maine," says Kathryn de Wit, a manager at the Broadband Research Initiative at Pew Charitable Trusts.  "We realized as we were doing the research to get an idea of what policy looks like across the country that there really wasn't any other kind of tool that gets everything about broadband policy in one place," de Wit says. Pew researchers also plan to explore which state-level policies have been most effective at spurring broadband deployment. 

Public Knowledge Files Comments Urging FCC to Drop USF Cap Proposal

Phillip Berenbroick  |  Press Release  |  Public Knowledge

Universal service is the core principle of US telecommunications policy, and Congress has directed the Federal Communications Commission to ensure affordable advanced telecommunications capabilities are available to everyone. Members of Congress from across the political spectrum, the Administration, the FCC, and state and local lawmakers vigorously agree that bringing the benefits of high-speed broadband to all areas of the US is a moral and economic imperative. However, the FCC’s proposal to cap the Universal Service Fund (USF) jeopardizes the FCC’s ability to use the agency’s universal service programs to close the digital divide.

The FCC should make a good faith effort to correct the outdated aspects of the USF contribution mechanisms by broadening the base of support for the universal service programs. Increasing the USF’s contribution base will buttress the sustainability of the program, alleviate burdens on current ratepayers, and ensure universal service programs have the funding they need to achieve their missions.

Fort Collins unveils new details about municipal broadband rollout

Jacy Marmaduke  |  Fort Collins Coloradoan

Fort Collins Connexion -- a public broadband service -- is on track to have its first broadband customer online by Sept. Who the customer will be, how much service will cost, or which parts of Fort Collins (CO) will get access first remained unanswered. But a Connexion update at a city council work session offered a few nuggets about what to expect: Connexion will officially launch, unveil a new website, and post pricing information in Aug. Broadband Director Colman Keane said the service will start out “very slowly” and ramp up through the fall, eventually reaching a rate of several hundred new customers a month. Keane said he considers broadband a platform that allows the city to try new things and offer better services for residents. The goal of “ubiquitous coverage” means residents will get the same quality of coverage regardless of where they live, he said. That’s a key part of the global smart cities initiative that focuses on using technology to improve lives and treat all citizens equally.

Wireless

T-Mobile, Sprint deal at final major hurdle: State AGs

Emily Birnbaum  |  Hill, The

The $26 billion T-Mobile–Sprint deal faces one last major hurdle as a group of state attorneys general look to block the telecommunications mega-merger in court. “The state attorney general lawsuit has a lot of legal and factual merit,” said Sen Richard Blumenthal (D-CT), a former state attorney general who has been critical of the T-Mobile–Sprint deal. “No one can predict what the outcome in courts is going to be, but they have a lot going for them,” he added. The group of 13 attorneys general, along with Washington (DC), are moving forward with their litigation to block the merger, which they officially announced in June — even before the DOJ announced its decision July 26. The attorneys general have not changed their tune following the DOJ decision. On Aug 1, during a status hearing in New York, the states will ask to delay the trial to allow them more time to revise their case to account for the DOJ’s proposal.

Television

Justice Department Requires Structural Relief to Resolve Antitrust Concerns in Nexstar’s Merger with Tribune

Press Release  |  Department of Justice

The Department of Justice will require Nexstar Media Group and Tribune Media Company to divest broadcast television stations in thirteen markets as a condition of resolving a challenge to the proposed $6.4 billion merger between Nexstar and Tribune. The Justice Department’s Antitrust Division, along with the offices of three state Attorneys General, filed a civil antitrust lawsuit in the U.S. District Court for the District of Columbia to block the proposed merger. At the same time, the Division filed a proposed settlement that, if approved by the court, would resolve the suit by remedying the competitive harms alleged in the complaint, through the divestitures and related conditions.  The participating state Attorneys General offices represent Illinois, Pennsylvania, and Virginia. 

As a result of the merger, the combined company would likely charge cable and satellite companies higher retransmission fees to carry the combined company’s broadcast stations, resulting in higher monthly cable and satellite bills for millions of Americans. The merger would also enable the company to charge local businesses and other advertisers higher prices for spot advertising in the divestiture markets. Businesses that rely on broadcast advertising benefit from price competition among broadcast station owners. Nexstar and Tribune compete with one another for the business of local advertisers, and the proposed merger would eliminate that competition, harming local businesses.

The Antitrust Division has determined that the divestitures would resolve aforementioned antitrust concerns related to the licensing of retransmission consent and the sale of broadcast television spot advertising that would otherwise result from the merger. The divestitures required under the settlement announced today would, if approved by the court, require Nexstar to sell one or more stations currently owned by either Nexstar or Tribune in each of the thirteen markets. The settlement requires that the divestitures be accomplished in such a way as to satisfy the United States that the divested stations, in consultation with the Attorneys General of Illinois, Pennsylvania, and Virginia, and associated assets will be used by the buyers as part of a viable and competitive commercial television broadcasting business.

Networks Sue to Stop Streaming Service Offering Free TV Feeds

Joe Flint, Drew FitzGerald  |  Wall Street Journal

The four major broadcast networks have filed a suit in federal court to shut down Locast, a nonprofit streaming service funded in part by AT&T and founded by a Dish Network lobbyist that offers their feeds to subscribers for no charge. CBS, Disney's ABC, Comcast’s NBCUniversal, and Fox argue that Locast is retransmitting the signals of their local TV stations without permission, in violation of copyright law. The fees that broadcasters receive from pay-TV distributors have become crucial to their long-term survival, and there is concern that if Locast grows in popularity, it could cut into that revenue stream. Locast has positioned itself as a free alternative to consumers who are tired of rising cable bills, in addition to serving as a distribution alternative for people who can’t get local TV signals through their antenna. In the lawsuit, the broadcasters argue that Locast is a pawn for AT&T and Dish, two of the largest pay-TV distributors in the country. The suit says Locast’s primary reason for existence is to help them avoid paying to carry broadcast content.

Security/Surveillance

Cisco to Pay $8.6 Million to Settle Government Claims of Flawed Surveillance Tech

Katie Benner, Kate Conger  |  New York Times

Cisco Systems agreed to pay $8.6 million to settle claims that it sold video surveillance technology that it knew had a significant security flaw to federal, state and local government agencies. Cisco will pay civil damages in connection with software that it sold to various government agencies, including Homeland Security, the Secret Service, the Army, the Navy, the Marines, the Air Force and the Federal Emergency Management Agency. Fifteen states joined the Justice Department in the claim against Cisco, one of the world’s largest sellers of software and equipment to businesses and governments. The case was filed in the Federal District Court for the Western District of New York under the False Claims Act, which addresses fraud and misconduct in federal government contracts. The government said the video surveillance software it bought from Cisco was “of no value” because it did not “meet its primary purpose: enhancing the security of the agencies that purchase it.” In many cases, the Cisco software actually reduced the protection provided by other security systems, the complaint said.

Stories From Abroad

Combating disinformation and foreign interference in democracies: Lessons from Europe

Margaret Taylor  |  Analysis  |  Brookings Institution

For people pondering the potential effects of foreign interference in the 2020 elections here in the United States, it is worth understanding what other democracies are doing to confront the same problem and what lessons can be learned from their experiences. As a 2018 report by the Senate Foreign Relations Committee put it: "[Russian President Vladimir] Putin’s Kremlin employs an asymmetric arsenal that includes military invasions, cyberattacks, disinformation, support for fringe political groups, and the weaponization of energy resources, organized crime, and corruption." Americans must be attuned to the risks to our democratic institutions when influential political actors in the US use the tactics of disinformation, originally perfected by the Kremlin, to advance and sustain political power. The four countries I highlight (Sweden, France, the United Kingdom, and Hungary) represent different illustrations of foreign influence and how various countries have responded. The key lesson from abroad is that disinformation is most effective when it plays on existing tensions within society. Amplifying and exacerbating those tensions can be all that is needed to destabilize a democracy. President Donald Trump is deploying some of the same disinformation tactics Vladimir Putin used to consolidate his own power in Russia. 

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