Daily Digest 8/2/2019 (News from the FCC Meeting)

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Table of Contents

News From the FCC Meeting

FCC Proposes $20.4 Billion Rural Digital Opportunity Fund  |  Read below  |  Press Release  |  Federal Communications Commission
Public Knowledge Finds FCC Rural Digital Opportunity Fund Insufficient to End Digital Divide  |  Public Knowledge
Statement on the Rural Digital Opportunity Fund and Digital Opportunity Data Collection  |  AT&T
FCC Adopts New Process for Collecting Broadband Data  |  Read below  |  Press Release  |  Federal Communications Commission
FCC Takes Important First Step to Improve Broadband-Deployment Maps While Maintaining Public Access to Underlying Data  |  Free Press
Signs of progress on broadband mapping, but more work still to do  |  Microsoft
Mapping the future of broadband in the U.S.  |  Verizon
FCC Reforms Rural Health Care Program  |  Read below  |  Press Release  |  Federal Communications Commission
FCC Telehealth Order Makes Progress But Creates More Uncertainty  |  Schools Health and Libraries Broadband Coalition
FCC Enforces Franchising Laws to Promote Broadband Deployment  |  Read below  |  Press Release  |  Federal Communications Commission
FCC Attempts to Use Limited Authority to Broadly Preempt State and Local Regulation  |  Public Knowledge
Trump FCC Votes to Radically Redefine Local Franchise Agreements and Undermine Community Needs  |  Free Press
Free Cable for Firehouses Put at Risk by FCC Vote  |  Read below  |  Todd Shields  |  Bloomberg
FCC Streamlines Application Process for Small Satellites  |  Federal Communications Commission
FCC Adopts Procedures for Dec. 17 Toll Free Number Auction  |  Federal Communications Commission
FCC Improves Access to 911 and Timely Assistance from First Responders  |  Read below  |  Press Release  |  Federal Communications Commission
FCC Bans Malicious Spoofing of Text Messages & Foreign Robocalls  |  Federal Communications Commission

Spectrum/Wireless

NTIA Asks Federal Agencies to Review Current Frequency Assignments  |  Read below  |  Public Notice  |  National Telecommunications and Information Administration
What Dish swooping in to save T-Mobile-Sprint means for you  |  Read below  |  Marguerite Reardon  |  Analysis  |  C|Net
Texas joins states’ lawsuit to block T-Mobile-Sprint deal  |  Associated Press
Global smartphone market is taking a significant pause ahead of the rollout of 5G services  |  Wall Street Journal
Verizon’s CEO thinks half of the US will have access to 5G next year  |  Vox
Shane Tews: Looking at Voqal and ensuring the proper use of educational wireless spectrum licenses  |  American Enterprise Institute

Platforms

FTC Antitrust Probe of Facebook Scrutinizes Its Acquisitions  |  Read below  |  Brent Kendall, John McKinnon, Deepa Seetharaman  |  Wall Street Journal
National Association of Broadcasters President: Big Tech Should Get Public Interest Scrutiny  |  Broadcasting&Cable
YouTube Tweaked Algorithm to Appease FTC But Creators are Worried  |  Bloomberg
After battling social media impostors for years, Rep Kinzinger (R-IL) wants to force Facebook to do more to combat fake accounts  |  New York Times
Big Tech giants battle for smart speaker dominance  |  Axios

Journalism

About a quarter of large U.S. newspapers laid off staff in 2018  |  Read below  |  Elizabeth Grieco  |  Research  |  Pew Research Center
The L.A. Times’ disappointing digital numbers show the game’s not just about drawing in subscribers — it’s about keeping them  |  Nieman
Is consolidation the key to a digital journalism transformation for Gannett and GateHouse?  |  USAToday

Content

Trump’s Racist Tweets Prompt Foundations to Speak Out  |  Chronicle of Philanthropy

Accessibility

A blind man couldn’t order pizza from Domino’s. The company wants the Supreme Court to say websites don’t have to be accessible  |  CNBC

Privacy/Security

Hack of British Education Software Maker Pearson Exposed Details on Thousands of US Students  |  Wall Street Journal
Cops Are Giving Amazon's Ring Your Real-Time 911 Caller Data  |  Gizmodo
House Oversight Committee members send questions to Capital One over its massive data breach. But also eye Amazon  |  CNN
The Capital One hack couldn’t have come at a worse time for Amazon’s most profitable business  |  Washington Post
After President Trump cites Amazon concerns, Pentagon reexamines $10 billion JEDI cloud contract process  |  Washington Post
Fed Examined Amazon’s Cloud in New Scrutiny for Tech  |  Wall Street Journal
Peter Thiel: At its core, artificial intelligence is a military technology. Why is Google sharing it with a rival?  |  New York Times

Advertising

Inside US-based "phone farms", where people use hundreds of smartphones to fabricate engagements with ads  |  Vice

Emergency Communications

Google will start using its text-to-speech technology for emergency calls on Pixels  |  Vox

Telecom

Senators Introduce Bill to Block Support for Illegal Robocallers  |  US Senate

Elections

No Net Neutrality Questions In Four Debates Hosted By ISP-Owned Networks  |  Forbes
Sen Feinstein Introduces Voter Privacy Act, Hoping to Prevent the Next Cambridge Analytica  |  US Senate

Lobbying

Huawei and it US suppliers increase spending on lobbyists in face of trade deadline  |  Fast Company

Policymakers

Senate Confirms Michael Kratsios As New Trump Administration Chief Technology Officer  |  Read below  |  John Eggerton  |  Broadcasting&Cable

Stories From Abroad

Google will charge search providers to be the Android default in Europe  |  Read below  |  Thomas Ricker  |  Vox
China Races Ahead of the US in the Battle for 5G Supremacy  |  Read below  |  Sheryl Tian Tong Lee  |  Bloomberg
Google will pause listening to EU voice recordings while Germany's data protection regulators investigate  |  Vox
 
Today's Top Stories

News from the FCC Meeting

FCC Proposes $20.4 Billion Rural Digital Opportunity Fund

Press Release  |  Federal Communications Commission

The Federal Communications Commission proposed establishing the Rural Digital Opportunity Fund, which would direct up to $20.4 billion to expand broadband in unserved rural areas. The proposal would raise the bar for rural broadband deployment by making more areas eligible for support and requiring faster service than the Connect America Fund (CAF) Phase II reverse auction. In a Notice of Proposed Rulemaking, the FCC seeks comment on continuing the expansion of broadband where it’s lacking by using an efficient reverse auction that builds on the success of the CAF Phase II auction. The Rural Digital Opportunity Fund would focus on areas currently served by “price cap” carriers, along with areas that were not won in the CAF Phase II auction and other areas that do not currently receive any high-cost universal service support. The Notice seeks comment on proposals to:

  • Make eligible for support any price cap area currently receiving CAF Phase II model-based support but lacking broadband at speeds of 25 Megabits per second (Mbps) downstream, 3 Mbps upstream, as well as the areas unawarded in the CAF Phase II auction.
  • Make additional homes and businesses eligible for support by including areas that remain unserved, despite previous expectations that they would be served without subsidies due to estimated lower costs.
  • Raise the standard for broadband deployment from the CAF’s 10 Mbps/1 Mbps minimum to at least 25 Mbps/3 Mbps, with incentives for faster speeds.
  • Allocate support through a multi-round reverse auction like that used in last year’s CAF Phase II auction. In that auction, competition reduced the cost of reaching over 700,000 unserved homes and businesses from the $5 billion auction reserve price to $1.488 billion.
  • Implement a two-phase approach: 1) In Phase I, target wholly unserved census blocks, using an existing FCC data collection 2) In Phase II, target unserved locations in partially unserved census blocks, using new, more granular data being developed through the Digital Opportunity Data Collection, along with areas not won in Phase I
  • Set a budget of $20.4 billion in high-cost universal service support, making available at least $16 billion for Phase I and the remainder available for Phase II. Both phases would have 10-year support terms.
  • Adopt technology-neutral standards, opening the auction to all types of providers that can meet program standards.
  • Ensure a smooth transition of support from existing providers to auction winners.
  • Include measures to require accountability to ensure that funding is used wisely to expand broadband deployment.

FCC Adopts New Process for Collecting Broadband Data

Press Release  |  Federal Communications Commission

The Federal Communications Commission initiated a new process for collecting fixed broadband data to better pinpoint where broadband service is lacking. The Report and Order and Second Further Notice of Proposed Rulemaking concludes that there is a compelling and immediate need to develop more granular broadband deployment data to meet this goal, and accordingly, creates the new Digital Opportunity Data Collection. To provide the data required by the FCC, the Report and Order, among other steps:

  • Establishes the Digital Opportunity Data Collection—a new data collection that will collect geospatial broadband coverage maps from fixed broadband Internet service providers of areas where they make fixed service available. This geospatial data will facilitate development of granular, high-quality fixed broadband deployment maps, which should improve the FCC’s ability to target support for broadband expansion through the agency’s Universal Service Fund programs.
  • Adopts a process to collect public input on the accuracy of service providers’ broadband maps, facilitated by a crowd-sourcing portal that will gather input from consumers as well as from state, local, and Tribal governments.
  • Makes targeted changes to the existing Form 477 data collection to reduce reporting burdens for all filers and incorporate new technologies.

The Second Further Notice of Proposed Rulemaking seeks comment on a number of issues, including:

  • Possible additional technical standards for fixed broadband providers that could ensure greater precision for the Digital Opportunity Data Collection deployment reporting and ways the Commission can incorporate location-specific fixed broadband deployment data in this new data collection;
  • Collection of more accurate, reliable mobile wireless voice and broadband coverage data and incorporation of this information into the Digital Opportunity Data Collection; and,
  • Sunsetting the Form 477 broadband deployment collection following the full implementation of the Digital Opportunity Data Collection.

The new data collection will take effect after the FCC's Office of Economics and Analytics issues a notice announcing the availability of the new collection platform as well as reporting deadlines.

FCC Reforms Rural Health Care Program

Press Release  |  Federal Communications Commission

The Federal Communications Commission reformed the Rural Health Care Program (RHC) aiming to ensure limited program funds are disbursed efficiently and equitably, promote transparency and predictability in the program’s administration, and strengthen safeguards against waste, fraud, and abuse. The action takes a number of steps to reform the distribution of RHC funding, in particular by revising the rules governing the Telecom Program to simplify calculation of the urban rate—the amount health care providers pay—and the rural rate—the amount that service providers receive. In addition, the Report and Order outlines a number of program reforms to:

  • Target funding to rural areas in the most need of health care services and ensure that, when demand exceeds available funding, eligible rural health care providers continue to benefit from RHC Program funding by prioritizing support based on rurality and whether the area is medically underserved.
  • Reform competitive bidding in the RHC Program to make it a more productive mechanism for health care providers to identify and select cost-effective service offerings available to them in rural areas; and
  • Adopt a series of Program-wide rules and procedures to simplify the application process for program participants and provide more clarity regarding the RHC Program procedures.

The Report and Order provides for the Program’s $150 million cap on multi-year and upfront payment requests to be adjusted annually for inflation. Additionally, the Report and Order includes several measures to ease the burden on applicants while establishing consistency between the RHC Programs, including providing additional time for the competitive bidding process, establishing a more efficient application filing window, and creating mechanisms for USAC to address deadline extension requests for invoicing and service delivery.

FCC Enforces Franchising Laws to Promote Broadband Deployment

Press Release  |  Federal Communications Commission

The Federal Communications Commission adopted new rules to prohibit excessive franchise fees. The Order explains that local governments may not regulate most non-cable services, including broadband Internet access service, offered over a cable system. These rules respond to a remand by the US Court of Appeals for the Sixth Circuit and set forth how local franchising authorities may regulate cable operators pursuant to the Communications Act.

In order to rein in overreach by local franchising authorities, and thereby facilitate the deployment of broadband infrastructure, the FCC concluded that, under the Act, cable-related, non-monetary contributions required by a local franchise are franchise fees subject to the statutory five percent cap with limited exceptions, including an exemption for certain capital costs related to public, educational, and governmental access channels. It has also prohibited, pursuant to the Act, local franchising authorities from regulating the provision of most non-cable services, including broadband Internet access service, that cable operators offer over their cable systems. In addition, the FCC decided that any state or local regulation of a cable operator’s non-cable services that imposes obligations on franchised cable operators beyond what the Communications Act allows is preempted. Finally, the FCC concluded that requirements concerning local franchising authority regulation of cable operators should apply to state-level franchising actions and state regulations related to local franchising. Together, these rules faithfully implement the terms of the Act and remove obstacles to the deployment of broadband. 

Free Cable for Firehouses Put at Risk by FCC Vote

Todd Shields  |  Bloomberg

Cable systems around the US provide towns and cities with public-access channels showing school board and city council meetings, as well as networks like one that keeps New York City’s firefighters connected to the internet. NYC’s information network feeds cable TV and internet service into every fire house in all five boroughs, and also carries public-safety messages The services are provided for free -- but probably not for long. The Federal Communications Commission is poised to decide on Aug 1 that cable providers such as Comcast and Charter should assign a value to the channels and data networks, and then reduce fees owed to localities by that amount. Mayors anticipate a squeeze to their budgets and express alarm at a change to arrangements negotiated in many cases long ago. “Local governments around the country would be forced to make difficult decisions,” cities including Atlanta, Boston, Dallas and Rye, New York said in a filing at the FCC.  Existing law lets cities impose both fees and obligations, and the FCC is muddling the two, the cities including Atlanta and Boston said in their filing. 

FCC Improves Access to 911 and Timely Assistance from First Responders

Press Release  |  Federal Communications Commission

The Federal Communications Commission adopted rules to help ensure that people who call 911 from multi-line telephone systems—which commonly serve hotels, office buildings, and campuses—can reach 911 and be quickly located by first responders. The new rules will also improve emergency response for people who call 911 from other calling platforms. The action implements two laws enacted in 2018 that are designed to strengthen emergency calling. First, the FCC took action to implement Kari’s Law, which requires multi-line telephone systems to enable users to dial 911 directly, without having to dial a prefix (such as a “9”) to reach an outside line. Kari’s Law also requires multi-line telephone systems to provide notification, such as to a front desk or security office, when a 911 call is made in order to facilitate building entry by first responders. Second, Section 506 of RAY BAUM’S Act requires the FCC to consider adopting rules to ensure that “dispatchable location” information, such as the street address, floor level, and room number of a 911 caller, is conveyed with 911 calls, regardless of the technological platform used, so that first responders can be quickly dispatched to the caller’s location. In addition, the FCC consolidated its 911 rules from multiple rule parts into a single rule part, making it easier for stakeholders, such as service providers and emergency management officials, to more easily ascertain 911 requirements. 

Spectrum/Wireless

NTIA Asks Federal Agencies to Review Current Frequency Assignments

The National Telecommunications and Information Administration sent guidance to executive branch departments and agencies for reviewing current spectrum frequency assignments. NTIA is requiring agencies to initially review two bands: 3100-3550 MHz and 7125-8400 MHz. The agencies must provide the information over the next six to nine months. NTIA will then solicit input from the agencies and other stakeholders on the next set of bands to be reviewed on a recurring and rolling basis. The data collection efforts include four components. First, agencies will review frequency assignment data for the two initial bands. Second, this information will be used to update or develop spectrum use contours for these initial and any additional bands. Third, agencies will continue to review their frequency assignments. Fourth, agencies and other stakeholders will explore additional methods, such as monitoring and scheduling, to better quantify spectrum use.

In a separate request, NTIA asked federal agencies on Nov. 30, 2018 to report on their future spectrum needs.

What Dish swooping in to save T-Mobile-Sprint means for you

Marguerite Reardon  |  Analysis  |  C|Net

The fate of T-Mobile and Sprint's $26.5 billion merger may hinge on whether a federal judge sees satellite TV provider Dish Network as a viable fourth competitor in the US wireless market. But there isn't an easy answer -- especially when you balance its history of ignoring its obligations to build a wireless network with its newfound ambitions sparked by the mobile megamerger. Dish has been a major player in several past wireless auctions. And for years, the company sat on its assets without any plans for deployment. It has asked for and was granted build-out extensions from the Federal Communications Commission. Finally, the company agreed to spend $1 billion to build what it called a narrowband IoT (internet of things) network by March 2020. There has been some rumbling at the FCC and among other carriers, mainly T-Mobile, that if Dish failed to meet this deadline that it would have to give back its licenses. While the terms of the brokered DOJ deal are broadly favorable for Dish, the biggest perk for the company is that the FCC will extend Dish's build-out deadline by three years. But there's one condition: The network that Dish builds must be a commercial wireless broadband network and not one just for IoT devices. 

Platforms

FTC Antitrust Probe of Facebook Scrutinizes Its Acquisitions

Brent Kendall, John McKinnon, Deepa Seetharaman  |  Wall Street Journal

Apparently, the Federal Trade Commission is examining Facebook’s acquisitions as part of its antitrust investigation into the social-media giant—to determine if they were part of a campaign to snap up potential rivals before they could become a threat. Facebook disclosed the FTC’s antitrust investigation in its earnings announcement recently, but provided few details. FTC investigators are looking for evidence on whether Facebook and founder Mark Zuckerberg purchased startup technology firms to keep them from challenging Facebook’s empire, and has begun reaching out to people who founded companies that Facebook purchased. The company has acquired about 90 companies over roughly the last 15 years. 

Journalism

About a quarter of large U.S. newspapers laid off staff in 2018

Elizabeth Grieco  |  Research  |  Pew Research Center

Layoffs continue to pummel US newspapers. Roughly a quarter of papers with an average Sunday circulation of 50,000 or more experienced layoffs in 2018. The layoffs come on top of the roughly one-third of papers in the same circulation range that experienced layoffs in 2017. What’s more, the number of jobs typically cut by newspapers in 2018 tended to be higher than in the year before. Mid-market newspapers were the most likely to suffer layoffs in 2018 – unlike in 2017, when the largest papers most frequently saw cutbacks. Meanwhile, digital-native news outlets also faced continued layoffs: In 2018, 14% of the highest-traffic digital-native news outlets went through layoffs, down slightly from one-in-five in 2017.

Policymakers

Senate Confirms Michael Kratsios As New Trump Administration Chief Technology Officer

John Eggerton  |  Broadcasting&Cable

Through a voice vote, the Senate has unanimously confirmed Michael Kratsios to be President Donald Trump's associate director of the White House's Office of Science and Technology Policy (OSTP), making him the new Chief Technology Officer. President Trump nominated Kratsios as CTO back in March. Kratsios was the deputy CTO as well as deputy assistant to the President for technology policy at the White House, a post he has held since President Trump took office. Kratsios has been involved in the Administration's initiatives to expand broadband, particularly in rural areas, and to free up more spectrum for 5G. Before joining the Trump White House, Kratsios was a principal at Thiel Capital, the venture capital firm founded by Peter Thiel, the billionaire tech entrepreneur who's been a staunch President Trump supporter and donor.

Stories From Abroad

Google will charge search providers to be the Android default in Europe

Thomas Ricker  |  Vox

Starting in early 2020, Google will present a new search provider choice screen to Android users in Europe when first setting up a new phone or tablet. The selection will then be the default search provider that powers the search box on the Android home screen as well as the Chrome browser if installed. Search providers will be required to pay Google each time a user selects them from the choice screen. Inclusion on the choice screen will be determined through a sealed-bid auction, with the top three bidders added alongside Google search. The announcement follows the record-setting $5 billion fine against Google for antitrust violations in the EU. The July 2018 ruling required Google to stop “illegally tying” its Chrome and search apps to Android. The European Commission then left the means of compliance up to Google, which the Commission continues to monitor.

China Races Ahead of the US in the Battle for 5G Supremacy

Sheryl Tian Tong Lee  |  Bloomberg

In the race for tech supremacy, China is betting it can seize the lead by building the world’s biggest 5G wireless networks. To get there, the country is banking on the might of the one-party state, making sure its state-run carriers have access to cheap airwaves and fast, inexpensive approvals for putting up the hundreds of thousands of base stations the fastest wireless technology requires. As top phone companies elsewhere flinch at the cost of building 5G wireless networks, China’s operators are barreling ahead on the government’s mandate, virtually free airwaves and equipment at less than half the price U.S. carriers are paying. Being the first to reach massive scale with the speediest networks could also help the nation in its ambition to dominateindustries like factory automation, robotics and autonomous driving.

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