Friday, August 3, 2018
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News From the FCC Meeting

The Federal Communications Commission is speeding the process and reducing the costs of attaching new network facilities to utility poles. The FCC fundamentally reformed the federal framework governing pole attachments by adopting a process in which the new attacher moves existing attachments and performs all other work required to make the pole ready for a new attachment. Called “one-touch, makeready,” this process speeds and reduces the cost of broadband deployment by allowing the party with the strongest incentive—the new attacher—to prepare the pole quickly, rather than spreading the work across multiple parties.
By some estimates, one-touch, make-ready alone could result in approximately 8.3 million incremental premises passed with fiber and about $12.6 billion in incremental fiber capital expenditures. The process will not apply to more complicated attachments, or above the “communications space” of a pole, where safety and reliability risks are greater, but the Order improves current processes for attachments in these spaces.
The FCC also addressed two forms of state and local regulatory barriers to the deployment of wireline and wireless facilities. The Report and Order makes clear that the FCC will preempt, on a case-by-case basis, state and local laws that inhibit the rebuilding or restoration of broadband infrastructure after a disaster. And in a Declaratory Ruling, the FCC made clear that blanket state and local moratoria on telecommunications services and facilities deployment are barred by the Communications Act because they, in the language of Section 253(a), “prohibit or have the effect of prohibiting the ability of any entity to provide any interstate or intrastate telecommunications service.”

Auction procedures to speed the deployment of 5G services in the 28 GHz (27.5-28.35 GHz) and 24 GHz (24.25-24.45, 24.75-25.25 GHz) bands. The FCC will offer the 28 GHz and 24 GHz band licenses through two auctions with separate application and bidding processes for each auction. The application windows will run concurrently. The bidding for the 28 GHz UMFUS licenses (Auction 101) will commence on November 14, 2018, and the bidding for the 24 GHz licenses (Auction 102) will commence after the bidding concludes in Auction 101. These two auctions will use different bidding formats to accommodate differences in the characteristics of the licenses in the two bands:
- Auction 101: The auction of the licenses in the 28 GHz band will employ the standard simultaneous multiple round auction format. The 28 GHz licenses will be offered in two 425 megahertz blocks by county.
- Auction 102: The auction of the licenses in the 24 GHz band will employ a clock auction format, beginning with a clock phase that will allow bidding on generic blocks in each Partial Economic Area in successive bidding rounds. There will then be an assignment phase to allow winners of the generic blocks to bid for frequency-specific license assignments. The 24 GHz licenses will be offered in seven 100 megahertz blocks.

The Federal Communications Commission proposed next steps to prepare the upper 37 GHz, 39 GHz, and 47 GHz bands for auction. In particular, auctioning the 39 GHz and upper 37 GHz bands together presents a critical opportunity for 5G deployment as it represents the largest amount of contiguous spectrum available in the millimeter-wave bands.
The Fourth Further Notice of Proposed Rulemaking proposes to transition existing spectrum holdings in the 39 GHz band (38.6-40 GHz) to the new flexible-use band plan in a manner that will promote the efficient use of this spectrum by incumbents and new licensees for new wireless services. The Fourth FNPRM also proposes related service rule changes for the Upper 37 GHz (37.6-38.6 GHz) and 47 GHz (47.2-48.2) bands. Specifically, the Fourth FNPRM:
- Proposes to modify the 39 GHz, Upper 37 GHz, and 47 GHz band plans from 200 megahertz to 100 megahertz channels.
- Proposes an incentive auction that would offer contiguous blocks of spectrum throughout the 39 GHz, Upper 37 GHz, and 47 GHz bands. The proposed incentive auction would have two phases: a clock phase, in which bidders bid on generic license blocks; and an assignment phase, in which clock phase winners can bid on specific frequencies. Incentive payments would be offered to incumbents who choose to relinquish their spectrum usage rights to make new licenses available.
- Proposes a pre-auction voucher exchange that would allow incumbent licensees to consolidate and rationalize their holdings before the auction.
- Proposes to repack any incumbent licensees that choose not to participate in the incentive auction and seeks comment on various options for repacking.

The Federal Communications Commission adopted requirements that will govern an incubator program to assist new, small, or struggling voices, including women and minorities, in overcoming the key barriers to entry into the broadcast sector. Under the program, an established broadcaster will provide financial and operational support, including training and mentoring, to a new or small broadcaster. At the end of a successful incubation relationship, the new or small broadcaster will either own and operate a new station independently, or the previously-struggling broadcaster’s station will be on a firmer footing. Once an incubation relationship is completed successfully, the established broadcaster will be eligible to receive a waiver of the FCC’s Local Radio Ownership Rule, subject to certain requirements. The incubator program initially will apply to full-service AM and FM broadcast radio stations as the costs of obtaining and operating radio stations make the radio sector a significantly more accessible entry point than television for entities with limited capital resources and operational experience.

The Federal Communications Commission is exploring the creation of an experimental “Connected Care Pilot Program” to support the delivery of advanced telehealth services to low-income Americans. In a Notice of Inquiry (NOI), the FCC seeks comment on creating a Universal Service Fund pilot program to promote the use of broadband-enabled telehealth services among low-income families and veterans, with a focus on services delivered directly to patients beyond the doors of brick-and-mortar health care facilities. The NOI seeks comment on:
- The goals of, and statutory authority for, the pilot program.
- The design of the pilot program, including the budget; the application process and types of telehealth pilot projects that should be funded; eligibility criteria for participating health care providers, broadband service providers, and low-income consumers; the broadband services and other communications services and equipment that should be supported; the amount of support and how it should be disbursed; and the duration of the program.
- How to measure the effectiveness of pilot projects in achieving the goals of the program.

The Federal Communications Commission proposed rules to implement a recent Congressional directive to reimburse certain Low Power TV (LPTV), TV translator, and FM stations for costs incurred as a result of the FCC’s incentive auction.
The Notice of Proposed Rulemaking tentatively concludes that LPTV and TV translator stations are eligible for reimbursement if (1) they filed an application during the Commission’s Special Displacement Window and obtained a construction permit, and (2) were licensed and transmitting for at least nine of the twelve months prior to April 13, 2017, as required by the 2018 Reimbursement Expansion Act. It also tentatively concludes that both full power FM stations and FM translators that were licensed and transmitting on April 13, 2017, using the facilities affected by a repacked television station, are eligible for reimbursement. The NPRM proposes that this include FM stations that incur costs to permanently relocate, temporarily or permanently modify their facilities, or purchase or modify auxiliary facilities to provide service during work on a repacked television station’s facilities. The NPRM further recommends a mechanism for reimbursing the newly eligible entities that is substantially similar to the process currently used by the Commission to reimburse full power and Class A licensees and MVPDs.
The Order portion of the item directs the Media Bureau to engage a contractor to assist in the administration of the Reimbursement Fund for LPTV/translator and FM stations and also directs the Bureau to make determinations regarding eligible costs and the reimbursement process. Finally, the Order discusses how the Commission plans to use the funds provided by the REA for consumer education.

The Federal Communications Commission announces the anticipated renewal of its Consumer Advisory Committee and solicits applications for membership, subject to renewal of the CAC's charter. Applications for membership are due by 11:59 P.M. EST, September 14, 2018. The FCC seeks applications from interested consumers, nonprofit organizations, corporations, or other entities from both the public and private sectors that wish to be considered for membership on the Committee. Selections will be made based on factors such as expertise and diversity of viewpoints necessary to effectively address the topics before the CAC. The FCC will determine the appropriate CAC size necessary to effectively accomplish the committee’s work. Applicants must be willing to commit to a two-year term of service, should be willing and able to attend at least three one-day meetings per year in Washington (DC) and should also expect to participate in at least one working group or subcommittee.
The mission of the CAC is to make recommendations to the FCC regarding consumer topics specified by the FCC and to facilitate the participation of consumers in proceedings before the FCC.

President Donald Trump has not contacted the Federal Communications Commission about its lack of approval for Sinclair's deal to buy Tribune, FCC Chairman Ajit Pai said. “No one in the White House has contacted us to express a view about the merger,” Chairman Pai said. A Trump tweet on the issue raised the question of whether he had involved himself in the decisionmaking progress of an independent regulator. “I will simply say what I said to Congress, which is, I stand by our decision. We looked at the facts and applied the law as we do in any transaction,” Chairman Pai said.

Rep. John Curtis (R-UT) hosted an invite-only roundtable discussion, hoping to gather stakeholder input on how to best address efforts to maintain an appropriately open internet system. "We tried to get every position represented in the room," said Rep. Curtis. "We had (internet service providers), edge providers and both large and small tech businesses. I felt like we had a really productive dialogue about our mutually shared objective — an open and fair internet." Rep Curtis noted that see-sawing Federal Communications Commission internet rule modifications, which have been following the tides of political change in the nation's capital, lead to uncertainty in the industry. And that, he noted, results in negative outcomes for all involved, from internet and content providers down to everyday web users. "My personal feeling is the best answer is a congressional fix," Rep Curtis said. "One of the problems we're experiencing right now is administration changes lead to (internet) policy changes and we whiplash back and forth. One of the resounding messages from the roundtable group was the need for predictability." Rep Curtis said while he understands the impetus behind the push to address the most recent FCC changes using the Congressional Review Act, he sees it as perpetuating the partisan divisiveness on net neutrality issues and "precludes the FCC from fine-tuning changes in the future."

The wireless sector enjoyed its biggest quarter-over-quarter jump in service revenue in five years, according to Chetan Sharma Consulting. The good news extended to all four major carriers, with T-Mobile leading the way with 7% growth. Chetan Sharma finds:
- Smartphone penetration is at 94%.
- The decline in tablets sales continued.
- The dominant net additions are connected cars and the Internet of Things. Combined, the overlapping groups represented 77% of net adds. AT&T dominated the connected cars segment during the quarter.
- The industry experienced record low churn.
- Data consumption in the US will be more than 8 GB per month by the end of 2018.
- Overall average revenue per user increased slightly due to a "softening of the price wars" and easier consumer spending as the economy improves. However, the entry of more non-phone devices led to a year-over-year ARPU decline of 4%.
- The upgrade cycle for the industry now is three years.

An ambitious smart-city project spearheaded by Alphabet subsidiary Sidewalk Labs has run into local resistance, causing delays. Waterfront Toronto, a development agency founded by the Canadian government, partnered with the Google sister company in October 2017 to create a futuristic neighborhood on the Toronto waterfront. Sidewalk Labs plans to fill the 12-acre plot with driverless shuttle buses, garbage-toting robots, and other gadgets to show how emerging technologies can improve city life. But Sidewalk Labs’ connection to Google and vague descriptions of its business model alarmed privacy advocates and urban planners from the start. Local pushback has increased since, causing a key supporter to resign from the project and delaying the release of its final development plan to spring 2019.

The Department of Justice’s Antitrust Division has opened a review of the Paramount Consent Decrees, which for over seventy years have regulated how certain movie studios distribute films to movie theatres. The purpose of the review is to determine whether or not the decrees should be terminated or modified. In particular, the Paramount Decrees have regulated how certain movie studios distribute films to movie theatres since the Supreme Court’s decision in United States v. Paramount, 334 U.S. 131 (1948). For example, the decrees ban various motion picture distribution practices, including block booking (bundling multiple films into one theatre license), circuit dealing (entering into one license that covered all theatres in a theatre circuit), resale price maintenance (setting minimum prices on movie tickets), and granting overbroad clearances (exclusive film licenses for specific geographic areas). Given that these decrees do not have any sunset provisions or termination dates, the Division will thoroughly review them to determine whether they still serve the American public and are still effective in protecting competition in the motion picture industry.

The Trump administration is exploring some sort of national privacy proposal amid efforts by the European Union and California to impose their own data requirements on the tech industry. “Companies are finding themselves squeezed on both sides," said Daniel Castro, vice president of Washington-based think tank Information Technology and Innovation Foundation (ITIF). Internet giants balked at California's new rules and think Europe's GDPR is a mess, but they also know the industry is developing a reputation for being obstructionist. That might have been no big deal a few years ago, but tech’s standing in Washington, London and Brussels isn't what it used to be, so the industry wants some kind of framework it can publicly support. “A lot of companies want to be able to say, 'Okay. this is what we've done for privacy. This is how we're supporting consumers,’" Castro said. California's law doesn't go into effect until 2020, and if tech manages to win some tweaks to the legislation before then, a national policy may become less important to the industry. At the same time, the possibility that the EU could pull out of the EU-US Privacy Shield, including during the deal’s annual review in October, is a "ticking time bomb," Castro said. Tech doesn't want to see the data-transfer agreement go away, even though some in Europe think the US. hasn’t done its part to deserve renewal. Being able to point to progress on a national privacy policy would be useful evidence that the industry is taking the topic seriously.
One possibility is a US ombudsperson to handle Americans' privacy complaints, akin to one that the EU insisted the US create under Privacy Shield. Another: a federal notice-and-choice policy that informs users about data collection. Tech would love a provision that preempts a patchwork of state privacy laws. What they would hate: Being required to let people freely use their products even if those consumers opt out of having their data sold to advertisers.

Congress is sending President Donald Trump legislation that would force technology companies to disclose if they allowed countries like China and Russia to examine the inner workings of software sold to the US military. The legislation, part of the Pentagon’s spending bill, was drafted after an investigation found software makers allowed a Russian defense agency to hunt for vulnerabilities in software used by some agencies of the US government, including the Pentagon and intelligence services. Security experts said allowing Russian authorities to probe the internal workings of software, known as source code, could help Moscow discover vulnerabilities they could exploit to more easily attack US government systems. Companies would be required to address any security risks posed by the foreign source code reviews to the satisfaction of the Pentagon, or lose the contract. The legislation also creates a database, searchable by other government agencies, of which software was examined by foreign states that the Pentagon considers a cyber security risk. It makes the database available to public records requests, an unusual step for a system likely to include proprietary company secrets. The new rules were drafted by Senator Jeanne Shaheen (D-NH).
Communications and Democracy
Press Secretary Sarah Sanders presents the official White House policy: The media is the enemy of the people

When President Trump derides the media as the enemy of the people — as he's doing more frequently — he's not just spouting off his momentary frustration. He's stating official White House policy. Four times in two days, White House Press Secretary Sarah Huckabee Sanders was offered the opportunity by reporters to clarify whether the president really thinks journalists are the enemy of Americans, or that it's wrong for people to harass journalists doing their job. It wouldn't be the first time an official White House statement contraindicated something the president said or tweeted. But four times in two days, Sanders refused to say that the media is not the enemy of the people or to condemn people who heckled a CNN reporter, to the point where he feared someone was going to get hurt. Instead, the White House press secretary ticked off a list of sometimes-inaccurate and sometimes-unrelated grievances about how these hyperpartisan times have affected her life and the president's life, and why they blame journalists for that.
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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