Wednesday, August 12, 2020
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Broadband Insights Report: Demand Still Above Pre-COVID Levels
Pandemic Shines a Light on Digital Divide
In Victory for Qualcomm, Appeals Court Throws Out Antitrust Ruling
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Broadband/Internet

Key findings in the OpenVault Broadband Insight Report for the second quarter of 2020 (2Q20):
- Consumers are continuing to increase reliance on upstream bandwidth and are opting for faster speeds to meet dramatically changed usage habits. Upstream consumption rose 5.3% from the end of Q1 to the end of Q2, likely reflecting increased use of videoconferencing for business, educational and lifestyle purposes during the COVID-19 pandemic. The upstream rise continued even though overall usage actually declined by 5.5% during the same period. Upstream consumption is up 56% year-over-year through 2Q20.
- Demand for faster bandwidth tiers accelerated during the same period, as consumer usage increasingly extended across multiple devices simultaneously and operators offered complimentary speed upgrades and relaxed data ceilings. Nearly 5% of subscribers now receive connections of 1 gigabit or faster, up 133% year-over-year and up 75% in the last six months alone. About 61% of all subscribers now have connections of 100 Mbps or faster, a one-year increase of 27%.
- Consumption is well above pre-pandemic levels. Even though total average usage declined from 402 GB to 380 GB in 2Q20, consumption is still well above pre-pandemic levels and up nearly 36% from the average of 280 GB at the end of 2Q19.
- Usage-Based Billing (UBB) consumption increased. With usage quotas relaxed during the pandemic, consumption by subscribers on usage-based billing (UBB) plans increased nearly 42% year-over-year, from 262.9 GB in 2Q19 to 372.8 GB in 2Q20.

The State Finance Council approved $60 million in grants to better beef up the state’s broadband infrastructure, although lawmakers acknowledge it won’t fully address the scope of the problem in rural Kansas. The money will come from the state’s allotment of federal CARES Act funding and will be funneled out in two separate grant programs. One, a $50 million pot, will aim to bolster internet speeds in underserved areas, while the remaining $10 million is designed to specifically help low-income residents. The Kansas Broadband Map, released in 2019 by Connected Nation, showed that 3.5% of the state’s population, or 90,000 residents, lack internet access. The effort will focus on internet service providers working on projects that could be finished by year’s end, when federal CARES Act money must be spent.

A group of the nation's leading technology associations sent a joint letter to Congressional leadership urging the passage of two crucial pieces of legislation that will help connect families in unserved areas to high-speed broadband internet:
- The Expanding Opportunities for Broadband Development Act (H.R. 7160), was introduced by Rep. G.K. Butterfield (D-NC). It would expedite broadband deployment by cutting outdated, exclusionary regulations. Written two decades ago in the days of dial-up modems, these regulations now invite abuse, slow deployment, and discourage competition.
- The bipartisan Rural Broadband Acceleration Act (H.R. 7022, S.4201) was introduced by House Majority Whip James Clyburn (D-SC) and Rep. Fred Upton (R-MI) and Senators Sherrod Brown (D-OH) and Rob Portman (R-OH). The bill would accelerate the deployment of gigabit tier networks in the upcoming $20.4 billion Rural Digital Opportunity Fund (RDOF) for builders starting construction within six months of receiving funding. And it sets a bold goal of providing broadband service to target communities within a year. This could quickly move a number of shovel ready projects into full production. This bill recognizes the urgency of closing broadband deployment gaps: the stakes are too high to wait any longer.
Associate Professor Colin Rhinesmith’s research on broadband access, wireless hotspot lending, and digital equity has new relevance and importance in light of the pandemic. “The most relevant work I’ve done is around the cost of broadband internet access,” says Rhinesmith. “Affordability is a big issue right now as many people are forced to be at home and get online, and a lot of people are also losing their jobs.” These issues are not impacting everyone equally — communities of color have experienced greater negative consequences from the pandemic. For those same communities, the cost of broadband access makes working online prohibitive. With the closure of many public libraries, access to reliable internet is further limited, increasing the “digital divide.” Rhinesmith’s work has been cited in recent efforts to bring attention to the problems of affordability of broadband and to what public libraries and other institutions are doing to promote digital equity. Rhinesmith recently participated in a webinar, sponsored by the University of Illinois extension, the Illinois Office of Broadband, and the Benton Institute for Broadband & Society, to share his research on digital inclusion and broadband adoption.

A three-judge panel of the US Court of Appeals for the Ninth Circuit threw out an antitrust verdict against Qualcomm, overturning a ruling that had threatened the chip maker’s business model. The panel reversed a 2019 ruling by District Court Judge Lucy Koh, who found that Qualcomm had abused its monopoly position in wireless chips and overcharged mobile phone makers for its patents. Judge Koh's decision could have forced Qualcomm to renegotiate its licensing contracts with phone makers and license its technology to rival chipmakers. The panel concluded that Qualcomm had no duty under antitrust law to license its competitors. It also ruled that Qualcomm’s policy of not supplying chips to any handset maker that had not licensed its patents did not work like an illegal surcharge on chips sold by competitors. The Federal Trade Commission had sued Qualcomm in 2017 over the issue. Disagreements about Qualcomm prompted a split between the FTC and other government agencies, including the Department of Justice, which contended that the District Court ruling could undermine Qualcomm’s position in technologies, like 5G, that are essential for national security.

Over 100 organizations and individuals, led by the Campaign for a Commercial-Free Childhood, have signed on to a letter warning about the downside of remote learning in the age of COVID-19 and beyond. As some school districts pull back on reopening in person due to spikes in the virus, privacy and other groups are warning parents and schools to "look past simplistic solutions peddled to increase EdTech profits, and find ways to limit students’ time on digital devices." Their concern is the push for remote learning will translate to EdTech companies capturing more children's data, crowd teachers out of education budgets, and subject kids to "relentless marketing efforts," all to "capture a larger portion of the $10 trillion global education market" and sell families on what they said is the false premise that EdTech is effective and budget-friendly. Signatories include 70 individuals and 36 advocacy groups including Center for Digital Democracy, the United Church of Christ, and the Massachusetts Teachers Association.

In 2016, the Federal Communications Commission issued a Notice of Apparent Liability for Forfeiture (NAL) to BellSouth Telecommunications (d/b/a AT&T Southeast) for apparently failing to charge two Florida school districts the lowest corresponding price for telecommunications services it provided under the E-Rate program. Specifically, the NAL proposed a forfeiture of $106,425 against AT&T for apparent violation of section 254(h)(1)(B) of the Communications Act of 1934, as amended (the Act) and section 54.511(b) of the FCC’s rules. Because the Act requires the FCC to issue a notice of apparent liability within one year of a violation and these apparent violations occurred more than one year prior to the issuance of the NAL, the FCC cancels the NAL and proposed forfeiture.
FCC Commissioner Michael O'Rielly said, "I fully support the decision to cancel this Notice of Apparent Liability and proposed forfeiture. The previous Commission’s attempt to evade the applicable statute of limitations through its continuing violation theory was offensive to the rule of law and must be thoroughly rejected.... According to the facts in the record, the two school districts in question chose to purchase services on a month-to-month basis directly from AT&T, rather than through the statewide consortium’s multi-year contract. Requiring AT&T to charge those school districts the same rates charged to those buying services from the bulk consortium contract would be a misapplication of our “lowest corresponding price” rule, which prohibits service providers from charging E-Rate eligible entities a price above what they charge “similarly situated” non-residential customers for “similar services.”
"I respect my colleagues’ decision today to conclude that this prior effort was procedurally untimely," said FCC Commissioner Jessica Rosenworcel. "However, I supported the underlying NAL and continue to believe that there are merits to our earlier approach. In particular, I believe our initial decision would support greater accountability with respect to universal service funds than the course the agency adopts today."
FCC Commissioner Geoffrey Starks said, "I do not disagree with today’s outcome, but I want to emphasize how much more needs to be done to give the lowest corresponding price rule the teeth it needs. The rule requires E-Rate service providers to offer participating schools and libraries rates at or below what they charge similarly situated customers for the same services—protecting schools, libraries, and the Universal Service Fund from inflated prices.... Going forward, we may need to adjust our rules or enforcement practices to ensure we actually punish and deter violations of the lowest corresponding price rule. Detecting these violations is challenging, and the Universal Service Administrative Company is our first line of defense. Due to the timing of various steps in the E-Rate funding cycle, however, USAC may not learn about the price a service provider has charged an E-Rate beneficiary until weeks or months later. The Commission should consider how we can best promote timely detection of violations to avoid future problems with the statute of limitations. If we don’t, schools and libraries will not get the full benefit of the lowest corresponding price rule."
Platforms
House Commerce Committee Leaders Urge Facebook Oversight Board to Pressure to Change Harmful Policies
House Commerce Committee Chairman Frank Pallone, Jr. (D-NJ), Communications Subcommittee Chairman Mike Doyle (D-PA) and Consumer Protection Subcommittee Chair Jan Schakowsky (D-IL) voiced concern that Facebook’s new Oversight Board does not have the power it needs to change Facebook’s harmful policies. In letters to the 20 Board Members, the three Committee leaders encouraged the newly appointed members to exert pressure on Facebook to listen to and act upon their policy recommendations, something that is not currently included in the Board Members’ overall responsibilities. The three Committee leaders wrote that the public interest should be the Oversight Board’s priority and that it should not be influenced by the profit motives of Facebook executives. Pallone, Doyle and Schakowsky also requested the board members answer a series of questions in the coming weeks.

TikTok skirted a privacy safeguard in Google’s Android operating system to collect unique identifiers from millions of mobile devices, data that allows the app to track users online without allowing them to opt out. The tactic, which experts in mobile-phone security said was concealed through an unusual added layer of encryption, appears to have violated Google policies limiting how apps track people and wasn’t disclosed to TikTok users. TikTok ended the practice in November 2019. The identifiers collected by TikTok, called MAC addresses, are most commonly used for advertising purposes.

Facebook is rolling out a new policy that will prevent U.S. news publishers with "direct, meaningful ties" to political groups from claiming the news exemption within its political ads authorization process. Since the 2016 election, reporters and researchers have uncovered over 1,200 instances in which political groups use websites disguised as local news outlets to push their point of view to Americans. Now, Facebook is ensuring that Pages connected to those groups are held to the same standard as political entities when it comes to advertising on the platform. The "news exemption" means that promoted content about social issues, elections or politics from news publishers is not labeled as political within Facebook's political archive.

Governments around the world, prompted by nationalism, authoritarianism and other forces, are threatening the notion of a single, universal computer network — long the defining characteristic of the internet. Most countries want the internet and the economic and cultural benefits that come with it. Increasingly, though, they want to add their own rules — the internet with an asterisk, if you will. The question is just how many local rules you can make before the network's universality disappears. It's not just efforts to control what's shown on the web, but also the infrastructure and networks that power the internet, as well as where data is stored. We still don't know exactly how much local control the internet can handle without splitting into a variety of smaller, regional networks. By the time we learn the answer that question, it will probably be too late to put the network back together.
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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