Daily Digest 8/28/2018 (Inspector General Report)

Benton Foundation
Table of Contents

Broadband/Internet

Michigan Broadband Roadmap: Lots of Ideas for Improving Availability, Adoption  |  Read below  |  Joan Engebretson  |  telecompetitor
Some Tennessee Residents Lack Broadband. Could the TN Valley Authority Become Their New ISP?  |  Read below  |  Michael Edward Miller  |  National Public Radio
Internet groups urge US court to reinstate net neutrality rules  |  Read below  |  David Shepardson  |  Reuters
Net Neutrality Activists Hammer Judge Kavanaugh  |  Read below  |  John Eggerton  |  Broadcasting&Cable
Big Telecom Is Using Robocalls to Fight a Net Neutrality Bill in California  |  Vice
ITIF’s Doug Brake: Verizon Throttling Firestorm Overblown  |  Information Technology and Innovation Foundation

Health

Sen Hassan (D-NH) Leads Colleagues in Urging FCC to Maintain Focus on Maternal Health in Telehealth Pilot Program  |  Read below  |  Press Release  |  Senate Commerce Committee
Chattanooga's Broadband Investment Opens the Door to Telehealth  |  Read below  |  Phil Goldstein  |  StateTech

Privacy/Security

Tech Industry Pursues a Federal Privacy Law, on Its Own Terms  |  Read below  |  Cecilia Kang  |  New York Times
Welcome to the Age of Privacy Nihilism  |  Read below  |  Ian Bogost  |  Op-Ed  |  Atlantic, The
Why New US Privacy Data Protection Law Will Preempt State Privacy Laws  |  Scott Cleland
Why the wireless industry should be worried about SIM hacking  |  Fierce
FBI's encryption fight with Facebook could have broad impact on smartphone users' privacy  |  Read below  |  Derek Hawkins  |  Analysis  |  Washington Post
GOP lawmakers urge improvements to cyber vulnerabilities resource  |  Read below  |  Jacqueline Thomsen  |  Hill, The

Ownership

Reps Pallone and Doyle to FCC: Do Not Terminate Sinclair Review  |  Read below  |  Press Release  |  House of Representatives Commerce Committee
Public Knowledge Files Petition to Deny Proposed T-Mobile, Sprint Merger  |  Public Knowledge
California Attorney General investigating whether T-Mobile's bid to acquire Sprint would violate any state or federal laws  |  Bloomberg
Dish Files Petition to Deny T-Mobile/Sprint Merger  |  Multichannel News
5 possible conditions on the Sprint / T-Mobile merger  |  Read below  |  Mike Dano  |  Fierce
Potential Implications of the Sprint-T-Mobile Merger on Wholesale Markets  |  Phoenix Center

Platforms/Content

President Trump Trump claims Google is suppressing positive news about him and ‘will be addressed’  |  Read below  |  James Vincent  |  Vox
Tumblr is explicitly banning hate speech, posts that celebrate school shootings, and revenge porn  |  Read below  |  Shannon Liao  |  Vox
3-D Printed Gun Plans Must Stay Off Internet for Now, Judge Rules  |  New York Times

Journalism

New Jersey just became the first state to help revive local news  |  Read below  |  Susan Livio, Daniel Munoz  |  NJ Advance Media, Bridge Tower Media
Pittsburgh becomes largest US city without a daily print newspaper  |  Hill, The
BuzzFeed News Asks Readers to Chip In With Donations  |  Wall Street Journal
Chuck Todd blames Fox News for Americans’ cratering trust in news media  |  Washington Post

Telecom

Telemarketer Fees to Access the FTC’s National Do Not Call Registry to Increase in 2019  |  Federal Trade Commission

Kids and Media

Children and Screens Endorses Children and Media Research Advancement Act  |  Children and Screens

Policymakers

Allegations of improprieties related to the Commission's review of the merger between Sinclair and Tribune  |  Read below  |  Public Notice  |  Federal Communications Commission
Chairman Pai on Inspector General Report Concluding No Favoritism Toward Sinclair  |  Read below  |  FCC Chairman Ajit Pai  |  Press Release  |  Federal Communications Commission
Rep Pallone on FCC IG Report on Pai’s Ties to Sinclair  |  Read below  |  House Commerce Committee Ranking Member Frank Pallone (D-NJ)  |  Press Release  |  House Commerce Committee
Podcast: More than Seven Dirty Words  |  Federal Communications Commission
Insults, straight talk, expertise — Sen McCain knew how to attract the media  |  Washington Post

Company News

AT&T CEO Randall Stephenson's big headache  |  Read below  |  Mike Dano  |  Fierce
A Q&A with AT&T Entertainment Executive on the Future of Video  |  Read below  |  Mae Anderson  |  Associated Press

Stories from Abroad

Facebook bans Myanmar military chief and says it was 'too slow' to act  |  CNN
German antitrust watchdog plans action on Facebook in 2018  |  Reuters
Today's Top Stories

Broadband/Internet

Michigan Broadband Roadmap: Lots of Ideas for Improving Availability, Adoption

Joan Engebretson  |  telecompetitor

A consortium established by Gov Rick Snyder (R-MI) has come up with a wide range of recommendations for increasing broadband availability in the state, which currently ranks 30th among the 50 states in broadband availability and 34th on broadband adoption. The consortium, known as the Michigan Consortium of Advanced Networks (MCAN), made its recommendations in a 100-page report titled “Michigan Broadband Roadmap.” MCAN’s goals include enabling all homes and businesses in the state to have broadband at speeds of at least 25 Mbps upstream and 3 Mbps downstream available to them by 2022 and speeds of at least 1 Gbps by 2026. In addition, MCAN aims to see a 95% broadband adoption rate for the state by 2024.

Recommendations include using a $20 million Connecting Michigan Communities grant to support between 50 and 100 projects annually that fund targeted investments that use broadband in innovative ways to increase economic activity. Another recommendation is to create an annual $500,000 fund to provide matching dollars to schools applying for E-Rate funding from the Universal Service Fund schools and libraries program.

Not surprisingly, cost was the top reason for households not subscribing to broadband, with 31% of households in that category citing it as their primary barrier. MCAN’s ideas for addressing this include reviewing the Michigan Telecommunications Act for possible enhancements to the Lifeline low-income program, exploring using surplus equipment to provide low-cost devices and increasing outreach and education for low-cost broadband programs such as Comcast’s low-income Internet Essentials service that provides broadband to qualified households for $10 a month.

Some Tennessee Residents Lack Broadband. Could the TN Valley Authority Become Their New ISP?

Michael Edward Miller  |  National Public Radio

Former Gov Phil Bredesen (D-TN) — and his Republican rival for the US Senate, House Communications Subcommittee Chairman Marsha Blackburn (R-TN) — have both been talking up plans to expand broadband access in rural places. But they're pitching two very different solutions. Bredesen's idea is proposing legislation that would allow the Tennessee Valley Authority to get rural residents hooked up. Today, the federal agency is primarily known as a power company, but it initially had a societal mission as well: Its dams were meant to control floodwaters and generate electric power for struggling communities across the Southeast. Bredesen says it could provide internet infrastructure as well. "TVA seemed, to me, to be the perfect vehicle to do that. It's in its DNA. It started out as a rural development agency in the 1930s." Chairman Blackburn is not in favor of the TVA idea. In a statement, she opposed the idea of broadband being treated as a utility. She called it an anticompetitive solution that will create a government monopoly and raise taxes. She says she's focused on free-market solutions, with the government helping private companies.

Internet groups urge US court to reinstate net neutrality rules

David Shepardson  |  Reuters

A coalition of trade groups representing companies including Alphabet, Facebook, and Amazon, urged a US appeals court to reinstate landmark “network neutrality” rules adopted in 2015 to guarantee an open internet. In a legal filing, the Internet Association, Entertainment Software Association, Computer & Communications Industry Association, and Writers Guild of America West urged the reversal of the Federal Communications Commission's decision under Chairman Ajit Pai to overturn the rules in December. “Rules regulating the conduct of (internet providers) continue to be needed to protect and promote an open internet,” the groups wrote in a brief filed with the US Court of Appeals for the District of Columbia.  The internet groups harshly criticized the FCC repeal and questioned its legal basis. The brief calls the FCC’s decision “unreasoned and unreasonable” and says its “flawed analysis runs counter to the record and departs from the (FCC’s) previous factual findings without explanation.” The groups also reject the FCC’s argument that enhanced transparency will allow market forces to ensure consumer access to an open internet. “It is irrational to think that transparency regarding ISP practices alone can protect net neutrality for the millions of consumers who cannot switch providers; they must either accept their ISPs’ disclosed traffic management practices or go without internet access,” the internet groups wrote.

Net Neutrality Activists Hammer Judge Kavanaugh

John Eggerton  |  Broadcasting&Cable

Network neutrality activists have gotten together to fight the nomination of Judge Brett Kavanaugh to the Supreme Court, saying he would put the wishes of big cable and big telecom over the interests of the public. Free Press, Public Knowledge, Fight for the Future, Demand Progress and 20 others have sent a letter to the Senate in opposition. His Senate nomination hearings--in the Judiciary Committee--are scheduled to begin Sept 4, although Democrats are trying to delay them, partly in hopes of regaining the Senate and blocking the nomination themselves. 

Kavanaugh is currently a judge on the US Court of Appeals for the DC Circuit, which is the court of primary jurisdiction for Federal Communications Commission decisions. Back in October, he dissented from a decision by the full court not to grant ISPs request that it reconsider its decision upholding the Title II reclassfication, a reclassification Kavanaugh said was unlawful and should have been vacated. Free Press et al. said that dissent revealed "his commitment to protect the alleged rights of the big cable and phone companies that provide broadband internet access rather than the communications rights of everyone in America who relies on an open internet."

Health

Sen Hassan (D-NH) Leads Colleagues in Urging FCC to Maintain Focus on Maternal Health in Telehealth Pilot Program

Press Release  |  Senate Commerce Committee

Sen Maggie Hassan (D-NH) led a group of her colleagues from the Commerce Committee in urging Federal Communications Commission Chairman Ajit Pai to maintain focus on maternal health as the Commission moves forward with its proposed Connected Care pilot program. This pilot would support access to care using telehealth. The letter comes after the FCC released a Notice of Inquiry (NOI) on supporting access to health care through telehealth in the Connected Care pilot program. “Telehealth can potentially offer critical and cost-effective solutions to pregnant women, as some of the most common pregnancy-related complications can be avoided with routine monitoring and medical care,” the Sens wrote. “As the FCC moves forward with this pilot program, we request that you maintain the focus on maternal health in the NOI. We also encourage you to work with the Department of Health and Human Services to identify best practices for positive outcomes for mothers and babies by using safe, effective telehealth applications and devices in the Connected Care pilot program.”  The Senators emphasized the importance of telehealth to rural and low-income communities across the country and reaffirmed their commitment to ensuring that such communities have access to the care they need. Also sigining the letter were Sens Amy Klobuchar (D-MN), Tammy Baldwin (D-WI), Tammy Duckworth (D-IL), Catherine Cortez Masto (D-NV), and Maria Cantwell (D-WA).

Chattanooga's Broadband Investment Opens the Door to Telehealth

Phil Goldstein  |  StateTech

Chattanooga (TN) has the fastest internet in the United States. Why is that? The Electric Power Board of Chattanooga, the city’s municipally owned telecom and utilities provider, has invested heavily in fiber-optic network infrastructure, delivering 1-gigabit-per-second connections. That has enabled residents to access superfast broadband services, but it could also spur the deployment of new services, including telehealth. The city is actively exploring the idea of delivering telehealth services to residents who subscribe to EPB broadband services. With EPB closing in on 100,000 total subscribers, telehealth services could potentially benefit a significant number of residents. “We’re right at about 98,000 customers today in our fiber optics division and getting close to having 100,000 by this fall,” said EPB President David Wade. "That’s a big milestone and one we are going to celebrate.” As the Times Free Press reports, when EPB launched its fiber-optic services in 2009, it projected it would get about 35,000 users. Given that momentum, the city wants to use its broadband investments to offer a wider array of services. “We’re very interested and committed to participating in this telehealth market, and are evaluating our options,” Katie Espeseth, vice president of product development at EPB, tells Government Technology. “Having partners that provide innovative products and services is how we plan to maintain our competitive edge in this market.” If users get broadband service from an ISP, they can add telehealth services for as little as $30 per month, potentially. 

Privacy/Security

Tech Industry Pursues a Federal Privacy Law, on Its Own Terms

Cecilia Kang  |  New York Times

In recent months, apparently, Facebook, Google, IBM, Microsoft and others have aggressively lobbied officials in the Trump administration and elsewhere to start outlining a federal privacy law. The law would have a dual purpose, they said: It would overrule the California law and instead put into place a kinder set of rules that would give the companies wide leeway over how personal digital information was handled. The efforts could set up a big fight with consumer and privacy groups. Many of the internet companies depend on the collection and analysis of such data to help them target the online ads that generate the bulk of their revenue.

“It’s clear that the strategy here is to neuter California for something much weaker on the federal level,” said Ernesto Falcon, legislative counsel at the Electronic Frontier Foundation. “The companies are afraid of California because it sets the bar for other states.”

Welcome to the Age of Privacy Nihilism

Ian Bogost  |  Op-Ed  |  Atlantic, The

A barista gets burned at work, buys first-aid cream at Target, and later that day sees a Facebook ad for the same product. In another Target, someone shouts down the aisle to a companion to pick up some Red Bull; on the ride home, Instagram serves a sponsored post for the beverage. A home baker wishes aloud for a KitchenAid mixer, and moments after there’s an ad for one on his phone. Two friends are talking about recent trips to Japan, and soon after one gets hawked cheap flights there. A woman has a bottle of perfume confiscated at airport security, and upon arrival sees a Facebook ad for local perfume stores. These are just some of the many discomforting coincidences that make today’s consumers feel surveilled and violated. The causes are sometimes innocuous, and sometimes duplicitous. As more of them come to light, some will be cause for regulatory or legal remedy.

Online services are only accelerating the reach and impact of data-intelligence practices that stretch back decades. They have collected your personal data, with and without your permission, from employers, public records, purchases, banking activity, educational history, and hundreds more sources. They have connected it, recombined it, bought it, and sold it. Processed foods look wholesome compared to your processed data, scattered to the winds of a thousand databases. Everything you have done has been recorded, munged, and spat back at you to benefit sellers, advertisers, and the brokers who service them. It has been for a long time, and it’s not going to stop. The age of privacy nihilism is here, and it’s time to face the dark hollow of its pervasive void.

[Ian Bogost is the Ivan Allen College Distinguished Chair in Media Studies at the Georgia Institute of Technology.]

FBI's encryption fight with Facebook could have broad impact on smartphone users' privacy

Derek Hawkins  |  Analysis  |  Washington Post

The FBI is asking a federal judge in CA to force Facebook to break the encryption on its Messenger app so investigators can listen in on an alleged MS-13 gang member's voice conversations. The case, which remains under seal, raises some of the same privacy concerns as the FBI’s unsuccessful effort to force Apple to engineer a way into the encrypted iPhone of one of the San Bernardino (CA) mass shooters. But the FBI’s request in the Facebook case could have a broader impact, since the bureau reportedly wants to intercept communications in real time. Rather than seeking access to a smartphone they’ve already seized, investigators reportedly want Facebook to help them wiretap a suspect just like a phone company would. 

“It essentially applies to any smartphone user,” said John D. Villasenor, a professor of technology and public policy at the University of California at Los Angeles. “Most of us would be able to say our phones haven’t been in the custody of law enforcement, but we all use messaging platforms of one kind or another.”  “The Apple case, as important as it was, involved a physical device that the government already had possession of,” he said, “whereas the Facebook matter involves communications between users and the question of what obligations companies like Facebook have with respect to communication services they offer.” Experts agree that prosecutors are likely basing their case on a law called the Wiretap Act. Passed in 1968, it requires telephone companies to provide technical assistance to law enforcement in tapping a phone if they present a court order. A ruling in the government’s favor probably wouldn’t stop with Facebook Messenger, Villasenor said. The government might seek to compel other messaging services such as WhatsApp to help the government listen in on voice conversations.

GOP lawmakers urge improvements to cyber vulnerabilities resource

Jacqueline Thomsen  |  Hill, The

GOP lawmakers on the House Commerce Committee are urging the Department of Homeland Security (DHS) to improve a platform listing common cyber vulnerabilities. Committee Chairman Greg Walden (R-OR), Communications Subcommittee Chairman Marsha Blackburn (R-TN), Rep Gregg Harper (R-MS), and Rep Rob Latta (R-OH), wrote a letter to Homeland Security Sec Kirstjen Nielsen suggesting that the program is granted a line item in the DHS budget instead of receiving uneven funding through contracts. The lawmakers also recommended that the program be reviewed biennially by both DHS and MITRE, the nonprofit that also manages the platform. The platform — known as the Comment Vulnerabilities and Exposures (CVE) program — was established nearly two decades ago to help companies, groups, agencies and others identify and share bugs.

Ownership

Reps Pallone and Doyle to FCC: Do Not Terminate Sinclair Review

House Commerce Committee Ranking Member Frank Pallone, Jr. (D-NJ) and Communications Subcommittee Ranking Member Mike Doyle (D-PA) sent a letter to Federal Communications Commission Chairman Ajit Pai urging the Commission to get to the bottom of allegations that Sinclair Broadcast Group lied to the FCC in the company’s failed attempt to acquire Tribune Media Company. In the letter, the lawmakers expressed their hope that the FCC’s Chief Administrative Law Judge (ALJ) would continue its ongoing review of the allegations against Sinclair.  In the event the ALJ closes its review before resolving the allegations against Sinclair, the lawmakers are urging Chairman Pai to direct the FCC’s Enforcement Bureau to review Sinclair’s conduct in the merger proceeding to determine whether Sinclair violated the law and FCC rules.  “Such a review should specifically examine whether Sinclair violated the law prohibiting licensees from making false material statements or omissions to the FCC," they wrote. Reps Pallone and Doyle continued that if such allegations are accurate, “Such conduct may violate the Communications Act, and raises doubts as to whether Sinclair is sufficiently qualified to retain its FCC licenses.  We understand that Sinclair wishes to withdraw its merger transaction from review and that the Enforcement Bureau does not oppose.   Nevertheless, it is important for the integrity of the institution that an investigation into Sinclair’s alleged misrepresentations and lack of candor be conducted.  It must be clear to Sinclair, and other licensees, that there are severe consequences for lying to the FCC.  For those reasons, we request that you direct the Enforcement Bureau to investigate this matter, if the ALJ does not.”

5 possible conditions on the Sprint / T-Mobile merger

Mike Dano  |  Fierce

Sprint and T-Mobile continue to work to obtain regulatory approval for their proposed merger. But, according to some analysts, don't expect the discussion to turn to conditions—including divestitures—until later in 2018. “We would not be surprised to see opponents refrain from offering conditions in these initial rounds of filings,” wrote the analysts at Wall Street firm New Street Research. “Generally, the opposition wants to push to kill the deal and only offer conditions as a last resort. There are many good reasons for such a strategy, but the biggest one is that one has to paint a picture of the horrors to arise and offering conditions at this time undercuts the clarity of images of problems to come.” The firm said that there are five major conditions hanging over the T-Mobile and Sprint transaction:

  1. Spectrum: Sprint and T-Mobile may be required to divest significant spectrum holdings in order to get approval for their deal. Interestingly, the analysts at Wells Fargo also noted that such a divestiture could enable the creation of a smaller wireless provider.
  2. Opposition from mobile virtual network operators (MVNOs) and wholesale dealers
  3. Jobs: Although Sprint and T-Mobile have promised to increase the number of employees if their merger is approved, the New Street analysts said that this remains a concern in the Trump administration.
  4. Interoperability: Sprint and T-Mobile could be required to ensure that their phones are interoperable with those of other carriers. 
  5. Foreign ownership. Because Sprint’s parent is Japanese carrier SoftBank and T-Mobile's parent company is Germany's Deutsche Telekom, foreign ownership could become an issue in any transaction.

Platforms/Content

President Trump Trump claims Google is suppressing positive news about him and ‘will be addressed’

James Vincent  |  Vox

President Donald trump took to Twitter Aug 28 to write:

Google search results for “Trump News” shows only the viewing/reporting of Fake New Media. In other words, they have it RIGGED, for me & others, so that almost all stories & news is BAD. Fake CNN is prominent. Republican/Conservative & Fair Media is shut out. Illegal? 96% of...

....results on “Trump News” are from National Left-Wing Media, very dangerous. Google & others are suppressing voices of Conservatives and hiding information and news that is good. They are controlling what we can & cannot see. This is a very serious situation-will be addressed!

The 96% claim seems to have originated on the right-wing site PJ Media before spreading to other outlets in the conservative news worldIt’s the analysis of a single reporter who Googled the term “multiple times using different computers” and tallied up the perceived bias of the outlets appearing in the first 100 results. 

Tumblr is explicitly banning hate speech, posts that celebrate school shootings, and revenge porn

Shannon Liao  |  Vox

Tumblr is changing its community guidelines to more explicitly ban hate speech, glorifying violence, and revenge porn. The new rules go into effect on September 10th. “It’s on all of us to create a safe, constructive, and empowering environment,” Tumblr writes in its blog post. “Our community guidelines need to reflect the reality of the internet and social media today.” Tumblr struck out words in its hate speech policy that encouraged users to argue with negative speech that “doesn’t rise up to the level of violence or threats of violence” and to only report something if it was “especially heinous.” Users can now report hate speech directly in the mobile app through the small paper airplane icon on the bottom right-hand side of a post. Tap “report” and then tap “something else,” which will take you to a list of more specific violations, including hate speech.

Journalism

New Jersey just became the first state to help revive local news

Susan Livio, Daniel Munoz  |  NJ Advance Media, Bridge Tower Media

On Aug 24, Gov. Phil Murphy (D-NJ) signed a law that aims to fill the local news void in New Jersey by creating the Civic Information Consortium, a grant-making organization led by a group of universities that would fund media start-ups. Supporters have said this is the first endeavor of its kind in the nation. But Gov Murphy's signing statement raised doubt about how much money they state immediately could dedicate to the cause. The legislation called for $5 million from the Trust Fund for the Support of Public Broadcasting, but "far less than $5 million remains available" in the fund, Gov Murphy's statement said. "[M]ost, if not all” of the money for the Consortium was used to fund federally mandated repairs and capital projects for the New Jersey Public Broadcasting Authority. The civic information consortium was to be financed by a portion of the $332 million sale from two of New Jersey’s public broadcasting licenses. According to Gov Murphy, former NJ Gov Chris Christie diverted most of the proceeds to the general fund in the 2018 budget, which is why the state could not afford to finance the civic information consortium. Jennifer Sciortino, a treasury spokesperson, said that only $6.3 million was left of the $322 million, and that it was being used for "critical capital needs and emergency repairs."

Policymakers

Allegations of improprieties related to the Commission's review of the merger between Sinclair and Tribune

Public Notice  |  Federal Communications Commission

In response to requests from Congress made on November 13 and November 15. 20! 7, the Federal Communications Commission Oflice of Inspector General (OlG) conducted an investigation into whether FCC Chairman Ajit Pai Chairman Pai "has taken actions to improperly benefit Sinclair Broadcast Group and "is executing his leadership of the FCC free from influences that compromise his objectivity and impartiality," especially with regard to the proposed merger of Sinclair and Tribune Media." 

After a comprehensive investigation including review of the emails, phone records and visitor logs noted above, coupled with interviews of the Chief of Staff and Chairman Pai, we found no evidence, nor even the suggestion, of impropriety, unscrupulous behavior, favoritism towards Sinclair, or lack of impartiality related to the proposed Sinclair-Tribune Merger. Our review did not reveal any improper actions. When asked specific questions as to whether any actions that ultimately may have inured to Sinclair’s benefit were influenced by any promises or threats either by Sinclair or any other entity, including President Trump or the Executive Office of President, the Chairman unequivocally replied in the negative. These responses were confirmed by the Chairman’s Chief of Staff. We have found no evidence that would lead us to question these responses.To the contrary, actions taken by Chairman Pai in the rulemakings identified in the letters from Congress are, as he stated in his interview, consistent with his long-held, and publicly espoused, policy beliefs. Based on our findings, we would recommend no further investigation into this issue at this time.

Prior to his appointment as FCC chairman, then-FCC Commissioner Pai met with President-Elect Donald Trump at Trump Tower -- in what Pai reffered to as a “job interview.”  Trump asked him if he was interested in becoming chairman of the FCC. Pai said yes. Also in attendance at the meeting were Peter Thiel, the founder of PayPal, and Trump’s son-in-law, Jared Kushner.  “Mr. Trump then asked Commissioner Pai to explain ‘what I had been doing.’ He had his (Pai’s) resume in front of him. Pai detailed his telecommunications experience and explained his vision for the future that included broadband infrastructure advancements and his personal dedication to making the internet accessible and affordable throughout rural America,” the report says. “The President-elect did not ask any specific policy-related questions, nor did he question him about his regulatory philosophy, although he was interested in the legal framework of the AT&T/Time Warner merger,” he wrote. “There was no discussion about Sinclair or any specific FCC proceeding.” While the meeting was publicized at the time, the report newly revealed that Trump “was interested in the legal framework” of AT&T’s proposed merger with Time Warner, a deal Trump had criticized publicly. Months later the Justice Department would go on to sue to block the deal, failing to mount a successful court challenge. The result is being appealed.On July 16, the report said, Chairman Pai received a phone call from White House lawyer Donald McGahn, who wanted to know the status of the FCC’s Sinclair merger review. Asked this month about contacts between the Trump administration and the FCC concerning the merger, Chairman Pai told reporters that the White House had never “contacted us to express a view” about the deal.

Then, on May 5, 2017, Chairman Pai received a cryptic email from Jared Kushner, Trump’s son-in-law, according to the probe. The email contained the message “Just tried you — had a quick thing to run by you." The report added that Chairman Pai received a phone call from a blocked number at 10:03 a.m. Chairman Pai did not remember the exchange, according to the inspector general’s report.

Chairman Pai on Inspector General Report Concluding No Favoritism Toward Sinclair

FCC Chairman Ajit Pai  |  Press Release  |  Federal Communications Commission

I’m pleased that the Office of Inspector General has concluded that there was ‘no evidence, nor even the suggestion, of impropriety, unscrupulous behavior, favoritism towards Sinclair, or lack of impartiality related to the proposed Sinclair-Tribune Merger.’ I have called on the FCC for many years to update its outdated media ownership regulations to match the realities of the modern marketplace. As I said when this investigation was first announced, the suggestion that I favored any one company was absurd, and today’s report proves that Capitol Hill Democrats’ politically-motivated accusations were entirely baseless.

Rep Pallone on FCC IG Report on Pai’s Ties to Sinclair

House Commerce Committee Ranking Member Frank Pallone (D-NJ)  |  Press Release  |  House Commerce Committee

Chairman Pai’s relationship with Sinclair needed to be investigated in light of Sinclair’s ties to the President and the Chairman’s abysmal responses to Congressional Democrats’ numerous oversight letters.  It should not take an IG investigation to get answers to basic questions regarding independence and integrity. The IG report provides the first detailed responses to Congress’ questions. Beyond that, questions remain regarding the Chairman’s personal communications, which the IG noted were beyond his reach, and his conversations with Jared Kushner and Don McGhan.  I’m glad the IG confirmed he will conduct an additional forensic examination on communications with the White House.

Company News

AT&T CEO Randall Stephenson's big headache

Mike Dano  |  Fierce

AT&T CEO Randall Stephenson has a lot on his plate, to say the least. And a new report from Wall Street investment firm Wells Fargo outlines just how many balls Stephenson has in the air as he works to integrate the Time Warner business, pay down a massive amount of debt, deploy 5G, stamp out a winning position in the video business, and build out fiber to millions of new locations. Indeed, the severity of the situation led the analysts at Wells Fargo to downgrade its rating on AT&T stock based on the company's top three major challenges:

  1. continued pressure on entertainment margins and enterprise stability not yet seen.
  2. many new balls to juggle (and invest in) with Time Warner assets.
  3. achieving delevering (retiring massive debt load) targets might push other priorities down the list.

A Q&A with AT&T Entertainment Executive on the Future of Video

Mae Anderson  |  Associated Press

David Christopher, who runs AT&T’s wireless and entertainment businesses, has a bird’s eye view of how streaming media and video are evolving. AT&T recently completed its $85 billion purchase of Time Warner, a deal designed to help traditional media companies compete better with nimble tech services such as Netflix. Soon after the deal closed, AT&T launched WatchTV, a $15-a-month streaming service that offers more than 30 TV channels, including Time Warner channels TNT and TBS. The Associated Press spoke with Christopher about how people are consuming media and what role wireless companies play. Asked about unique ways AT&T could use Time Warner content, Christopher said, "There are lots of opportunities that we envision to drive innovation on behalf of consumers. You could have the ability to share a portion of a TV show that you thought was really funny or really impactful. You could have the ability to create a personalized news channel, or the ability to follow a particular athlete or star with personalized video coming right to your phone." He also said, "There’s a dramatic shift toward digital and a dramatic shift toward mobile. The number of hours people are watching linear television is dropping. The number of hours on mobile and digital is rising....We think those trends will continue and will be augmented by other technology, like augmented reality, mixed reality, virtual reality. Much more mobile consumption, much more consumption of other ancillary devices. It’s why we are excited about the combination of our mobile network plus content."

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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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