Broadcasting&Cable

Republican Reps Urge FCC to Continue Protecting Privacy

More than half a hundred Republican Reps signed onto a letter asking Federal Communications Commission Chairman Ajit Pai to "continue ensuring" that consumer broadband privacy is maintained until the FCC "remedies" the Title II reclassification. Republicans are pushing the FCC to roll back Title II.

Lead signatories on the letter were House Commerce Committee Chairman Greg Walden (R-OR), Communications Subcommittee Chairman Marsha Blackburn (R-TN) and Digital Commerce and Consumer Protection Subcommittee Chairman Bob Latta (R-OH). The letter was phrased to signal that they thought the FCC had been protecting privacy and just wanted to emphasize the need to continue to do so and to do so along the lines of the Federal Trade Commission's privacy by design approach to edge providers and, formerly, ISPs. "Until such time as the FCC rectifies the Title II reclassification that inappropriately removed ISPs from the FTC's jurisdiction, we urge the FCC to continue to hold ISPs to their privacy promises," the letter reads.

FCC Asked to Review Neil Gorsuch Ads

The Campaign Legal Center has asked the Federal Communications Commission to review ads from the Judicial Crisis Network pushing for the confirmation of Neil Gorsuch as Supreme Court justice. CLC says that JCN incorrectly labeled the ads nonpolitical and that instead they should have been subject to FCC disclosure rules that apply to “a message relating to any political matter of national importance.”

"The JCN ads indisputably meet this standard," said CLC. CLC points out that the Communications Act requires the disclosure of specific information when such a standard is met, information the JCN ads were lacking, it said. Broadcasters are required to place ads related to political matters of public importance in their public files, and they must include who bought the add and the highest officers of that group. CLC argues that should apply not only to the groups like JCN but the often big money, unidentified funders of those groups. But the FCC has yet to tighten its rules under either Democratic or Republican chairs. It has joined in various FCC complaints, both against stations they say weren't complying with the rules as they are, as well as asking the FCC to tighten them.

FilmOn X Appeals Ninth Circuit Panel Decision to Full Court

FilmOn X on April 6 sought a full-court re-hearing in the Ninth Circuit Court of Appeals after a three-judge panel of that court in March reversed a lower court decision that FilmOn X was eligible for the same compulsory license to TV programming as cable operators have. The appeals court panel held that "a service that captures copyrighted works broadcast over the air, and then retransmits them to paying subscribers over the Internet without the consent of the copyright holders, is not a 'cable system' eligible for a compulsory license under the Copyright Act."

Broadcasters led by Fox had challenged the lower court ruling after US District Court judge George Wu sided with FilmOn X. The company argues that the Copyright Office has been inconsistent on the license, granting one to U-verse and FiOS as substantially similar to cable, for example, while denying ones to FilmOn X and others that also use IP technology. It also says Congress meant for the definition of cable to be able to encompass new technologies like FilmOn X.

Spectrum Hearing Reveals Raw Wounds From Broadband Privacy Rule Rollback

The House Communications Subcommittee held a hearing on wireless spectrum and the economy, but it had to wait for Democratic and Republican lawmakers to air out their grievances over the passage last week of the Congressional Review Act (CRA) resolution rolling back Federal Communications Commission broadband privacy regulations. The back-and-forth was particularly heated and even personal, illustrating the widening political divide on Capitol Hill.

Subcommittee Ranking Member Mike Doyle (D-PA) and full Committee Ranking Member Frank Pallone (D-NJ) used their opening statements to weigh in on Republicans "ramming" the CRA down the "public's throat," as Rep Doyle put it. Rep Doyle also called out CTIA (though not by name)—a CTIA witness, the only association witness, was at the table—for supporting the CRA, saying the industry association had acted in a "selfish and irresponsible way." He said he expected more from it and its members, and the American people did as well. Saying that CTIA's support for the CRA meant that there were no privacy protections, Rep Doyle said: "Believe me, my constituents and your customers are not happy about this." House Commerce Committee Chairman Greg Walden (R-OR) shot back that the issue had been "horribly spun" and that the FCC created the problem when it reclassified ISPs under Title II and took over regulation of broadband privacy form the Federal Trade Commission.

'Connectivity' Bills from Democratic Reps Targets 'Fake News' Retaliation

House Democrats have released a suite of "connectivity" bills April 5 that would, among other things, prevent the Federal Communications Commission from targeting broadcasters "or anyone else" on the basis of viewpoint, toughen FCC political ad disclosure rules, and boost broadcast diversity.

The Protecting Dissenting Viewpoints and Voices Act (HR 1574), introduced by Rep Ben Jay Luján (D-NM), stems from FCC Chairman Ajit Pai's decision not to weigh in on President Donald Trump's branding of news outlets as "fake news" and in the shadow of the President's ongoing threats, or perceived threats, including invoking potential changes in libel laws or, as a candidate, suggesting his Administration should bock a deal involving Time Warner, which owns one of his main targets, CNN. The bill would prevent the FCC from revoking any license, denying a license transfer, or taking action against an individual for their viewpoints on issues of public importance. The bill would also prevent the President from directing an agency from retaliating over a broadcast viewpoint.

The Keeping Our Campaigns Honest (KOCH) Act (HR 1439), whose name is a reference to the Koch brothers, who are big Republican donors, was introduced by Reps John Yarmuth (D-KY), Peter Welch (D-VT) and Luján. It would "direct the FCC to revise its sponsorship identification rules to require that the true identity of individuals behind anonymous campaign ads be disclosed."

The Expanding Broadcast Ownership Opportunities Act, introduced by Rep GK Butterfield (D-NC) would boost data and reporting requirements for ownership diversity, restore the tax certificate program and establish a minority incubator program (see separate story).

The Connected Government Act which would require government websites to be optimized for mobile.

The Family Telephone Connection Protection Act (HR 1184) which would require the FCC to regulate prison phone rates.

Crowd Surrounds Nullification of FCC Privacy Rules

The nullification of the Federal Communications Commission's broadband privacy rules at the stroke of the President Donald Trump's pen drew a big audience in Washington, most of them either to weigh in on one side or the other of the contentious issue.

House Commerce Committee Ranking Member Frank Pallone (D-NJ) said, “Once again, the American people lose out at the hands of President Trump and the Republican Congress. The Republicans thought they could jam through this harmful law without anyone noticing. But despite their effort to hide this latest corporate giveaway, Americans of all political stripes spoke out loud and clear to say that they wanted to keep their personal information private and secure. Despite this setback, the fight is not over, and I will work to restore privacy protections for the American people.”

FCC Votes to Reverse Charter Overbuild Condition

The Federal Communications Commission has voted to modify the Charter-Time Warner Cable deal conditions by removing the requirement that Charter overbuild a million internet access customers who could already get high-speed access from another provider, apparently. The idea of the condition, imposed under former FCC Chairman Tom Wheeler, was to promote price and speed competition.

New FCC chairman Ajit Pai circulated the item in March, after which it was widely expected to be approved. The buildout requirement remains, but according to the item that could now all be buildouts to currently unserved homes, with no overbuilding. However, Charter could still choose to overbuild those one million, they are just no longer required to do so. Charter in 2016 said it intended to focus its overbuild activity against teleommunication broadband providers, not other cable companies.

FCC Loses Fax Opt-Out Ad Ruling

The Tom Wheeler Federal Communications Commission suffered another defeat in the opt-out advertising category March 31 as a three-judge panel of the US Court of Appeals—in a 2-1 decision—overturned a ruling regarding faxed advertisements, saying the FCC had exceeded its authority. The FCC in 2014 upheld a previous conclusion that its rule implementing The Junk Fax Prevention Act of 2005 required opt-out notices not only on unsolicited faxed ads but solicited ones as well. That was more than an academic exercise since the FCC was responding to a 2010 request for a declaratory ruling by a drug company, Anda, that wanted the FCC to find the rule didn't apply to solicited faxes—since that meant the recipient had agreed to get them. Anda was being sued for $150 million by pharmacies that claimed, even though they had agreed to get the faxes, there should have still been an opt-out option. The FCC agreed; the court panel did not.

Ajit Pai's Business Data Services Proposal Draws Mixed Reviews

Federal Communications Commission Chairman Ajit Pai's proposal to deregulate business data service (BDS) rates—credit card readers, ATMs—of incumbent carriers and not to impose potential new price regulations on competitors including cable operators was drawing a lot of attention in Washington after the chairman signaled the FCC would vote on his BDS item at the April meeting. Former chairman Tom Wheeler ran out of time and support for his BDS revamp, which Pai had issues with. A notice of proposed rulemaking (NPRM) under Wheeler was adopted along party lines, but the order was never voted. Pai’s item would be an order based on what he said was lengthy data collection and the input into that NPRM, though critics of his plan were suggesting it was sufficiently different from the NPRM that it should be put out for new comment.

FirstNet Milestone Draws Crowd of Fans, Including White House

The Commerce Department's announcement that AT&T had been awarded the contract to build and maintain FirstNet, the interoperable broadband communications network suggested after first responder communications failures on 9/11, drew praise from various quarters. "This step was part of the 9/11 Commission’s recommendations on improving the ability of our police, fire, and emergency medical personnel to communicate seamlessly across jurisdictions, which is critical to their missions," said White House press secretary Sean Spicer. "It’s also a sign of the incredible ability of public-private partnerships to drive innovation and solve some of our biggest problems while also creating jobs and growing the economy."

Pai to ACA: Broadband Is an 'American' Issue

Federal Communications Commission Chairman Ajit Pai said that broadband is the infrastructure challenge of our time, and he sees cable operators not as an enemy of that effort but as partners in better enabling citizens to reap the benefits of the digital revolution. Former Chairman Tom Wheeler often framed Internet service providers as gatekeepers and potential snakes in the virtuous garden in need of minding.

American Cable Association president Matthew Polka, who interviewed the chairman at the American Cable Association annual summit, called Pai's a "refreshing take"—to applause from members. Chairman Pai was speaking in advance of their visits around Washington (DC) to make the case on Capitol Hill and elsewhere for the important role of small and medium sized telecoms/cable operators and the need to recognize their particular challenges. Polka pointed to the active agenda of the new chairman, and that came even before he had announced a busy meeting agenda for April that includes a revamp of business data services (BDS) that is not expected to include potential new price regs on cable operators ISPs, as his predecessor had proposed. Chairman Pai said that his short-term goals include promoting infrastructure investment and whether any regulations currently on the books are impeding that—the April agenda includes some proposals to speed that deployment by removing regulatory barriers.

President Trump Exhumes Veiled Threat to Change Libel Laws

President Donald Trump has renewed his suggestion that libel laws might need to be tightened so he could pursue news outlets whose stories he feels are wrong or unjustified attacks. In a tweet March 30, the President once again took aim at one of the mainstays of the mainstream media. "The failing @nytimes has disgraced the media world," he wrote. "Gotten me wrong for two solid years. Change libel laws?" That followed a tweet from March 29: "Remember when the failing @nytimes apologized to its subscribers, right after the election, because their coverage was so wrong. Now worse!"

FCC Issues Payment Guidelines for Incentive Auction, Repack

Broadcasters and cable operators who want to get compensated for post-incentive auction repack expenses, and broadcasters who want to get their incentive auction winning bid payments, need to read the latest Federal Communications Commission public notice. That notice, released on the eve of the March 30 close of the incentive auction, says it contains "essential steps that Payment Applicants must take before receiving incentive payments based on winning reverse auction bids or payments from the Television Broadcaster Relocation Fund (the Fund) for expenses eligible for reimbursement." That includes how to enter and update bank account information, tracking those payments, and the impact of ownership changes.

The notice reads, "Before the Commission can direct disbursement of incentive payments, a winning bidder must certify its agreement with and acknowledgement of specified payment terms and provide necessary information regarding the account to which the incentive payment should be made." The FCC can't yet say when broadcasters will be getting their money, since it depends on when the forward auction bidders pony up the cash for their spectrum. Broadcasters will get their winnings in a lump sum, with stations in the first phases of the repack getting the money first if the FCC is not able to hand it all out at once. The FCC will release a "Ready to Pay" public notice when it is ready to pay broadcasters, or multiple notices if it has to pay the first-phase stations first. That will depend on how much and when they collect from forward auction bidders.

FCC's Pai Gets Pushback on Lifeline Eligibility Rollback

Federal Communications Commission Chairman Ajit Pai was already getting pushback from Capitol Hill, his fellow Democratic commissioner, and others soon after he announced the plan to roll back the FCC's Lifeline eligibility program in favor of letting states decide who should get to provide the subsidized broadband service to low income residents. “This is another effort by President Trump’s FCC to inflict death by a thousand cuts on the Lifeline program," said House Commerce Committee Ranking Member Frank Pallone (D-NJ), Communications Subcommittee Ranking Member Mike Doyle (D-PA), and Rep Doris Matsui (D-CA) in a joint statement. "Through lawyerly maneuvering, the FCC is trying to disguise its efforts to eliminate a system designed to make it easier for anyone who needs access to broadband to get it—no matter where they live. We will continue to fight for this important program that keeps struggling families across the country connected.” “Chairman Pai's statement confirms that under this Administration low-income Americans will have less choice for Lifeline broadband, and potential providers who want to serve low-income Americans will face greater barriers to entry and regulatory uncertainty," said Democratic FCC commissioner Mignon Clyburn. "While today's announcement is not surprising, it is nonetheless deeply disappointing.”

Corporation for Public Broadcasting Makes Case on Hill for Funding

Corporation for Public Broadcasting president Patricia Harrison was on Capitol Hill March 28 to pitch full funding for noncommercial TV and radio—even as President Donald Trump has proposed cutting all federal funds—but to some Republican pushback over a familiar topic: alleged liberal bias, though to some encouraging words from the Republican chairman of the subcommittee. She also signaled that Federal Communications Commission spectrum auction funds wouldn't be a big boon for noncommercial stations looking for funding elsewhere. Harrison asked for full funding for 2020 (the service is forward-funded to attempt to insulate it from politics), $55 million for 2018 for interconnection systems and $30 million for the Ready to Learn program at the Department of Education.

News Media Alliance to FCC: Stronger Industry Is Best Fake News Defense

The News Media Alliance, the principal newspaper association, has told the Federal Communications Commission there is no "rational explanation" for the commission to continue to preserve the 1975 newspaper-broadcast crossownership ban and that to do so limits their ability to be the counterpoint to the current spate of "fake news."

NMA made the point in comments to the FCC in support of the National Association of Broadcasters, which asked the FCC to reconsider its quadrennial media ownership rule review conclusion last summer that the ban should remain in place. NMA says the rule undermines local news and prevents newspapers from competing in a crowded media landscape. The National Association of Black Owned Broadcasters, which also backs NAB's reconsideration petition, said that the ban limits competition and hurts broadcasters large and small. NMA said the same applies to newspapers, adding: "A threat to newspapers is a threat to the American people."

AT&T Expands Fiber to 17 More Metros

AT&T Fiber, the new brand for an fiber-to-the-premises (FTTP) effort previously called AT&T GigaPower, said it has expanded its footprint to parts of 17 more metros. The latest cities to get access include Birmingham (AL), Charleston and Colombia (SC), Chicago (IL), Greensboro (NC), Huntsville and Mobile (AL), Houston (TX), Indianapolis (IN), Kansas City (MO), Little Rock (AR), Los Angeles (Jurupa, Los Angeles and Orange County) (CA), San Diego and Sacramento (CA), Memphis (TN), New Orleans (LA), and St. Louis (MO). In markets such as San Diego and New Orleans, AT&T Fiber is selling a symmetirical 1 Gbps service starting at $80 per month, with a 12-month commitment, rising to $119 per month after that introductory period. AT&T is also pitching TV bundles with DirecTV and U-verse TV.

New Bill Would Make Copyright Chief Term-Limited POTUS Pick

The Register of Copyrights Selection and Accountability Act of 2017 was introduced late March 23. The bipartisan bill, co-sponsored by House Judiciary Committee Chairman Bob Goodlatte (R-VA) and Ranking Member John Conyers (D-MI), would make the position a presidential appointment, requiring confirmation by the Senate, and with a term limit of 10 years.

Currently it is an appointment of, and reports to, the Librarian of Congress and has no term limit. The Register of Copyrights oversees the Copyright Office, whose opinion that online video streamers aren't pay-TV providers when it comes to compulsory license eligibility was just deferred to by the Ninth Circuit in ruling against streamer FilmOn X. The duties of the registrar include "legal interpretation of the copyright law...promulgating copyright regulations; advising Congress and other government officials on domestic and international copyright policy and other intellectual property issues."

AT&T, DOJ Settle Dodgers Suit

The Department of Justice has reached a settlement with DirecTV parent AT&T in which it agreed not to share "confidential, forward-looking information with competitors." The antitrust division filed suit Nov. 2 and alleged that DirecTV was the lead entity in "information exchanges" with competitors — Cox, Charter and AT&T — during negotiations for Time Warner Cable-owned SportsNet LA and its Dodgers games.

The agreement stipulates that "when DirecTV and AT&T negotiate with providers of video programming, including negotiations to telecast the Dodgers Channel, they will not illegally share competitively sensitive information with their rivals." There will also be mandatory monitoring — by the companies, not the government — of communications between programming execs and rival companies, as well as compliance programs and "antitrust training."

Supporters Rallied Against Senate Broadband Privacy Regulation Rollback

Warning that Senate Republicans are pushing for a vote on rolling back Federal Communications Commission broadband privacy regulations as early as March 23, Public Knowledge is trying to get supporters of the regulations to ask their Congresional members to push back. Apparently, a vote in the Senate is likely the week of March 20.

Sens Markey, Gillibrand Tell President Trump They'll Fight for CPB

Sens Ed Markey (D-MA) and Kirsten Gillibrand (D-NY) wrote President Donald Trump to register their opposition to defunding the Corporation for Public Broadcasting. “Any funding cuts to the CPB could create a content deficit where the public no longer has access to enriching educational, civic, and entertainment shows for all Americans, regardless of ethnic, racial or socio-economic background,” they wrote. “With its near universal footprint, CPB provides virtually all Americans with access to this educational content and top-caliber local, regional, and national news. Approximately 99% of all Americans can enjoy this public media, regardless of how much money they earn or where they live.” They made a point of supporting independent sources of news. They pledged to oppose any attempt to decrease funding, much less eliminate it.

Chairman Pai to Address American Cable Association March 30

Federal Communications Commission Chairman Ajit Pai will address the American Cable Association's annual policy summit in Washington (DC). Chairman Pai will speak on the morning of March 30, before the attendees fan out to the FCC and Hill to carry their message of keeping the needs of smaller and mid-sized operators top of mind.

Competitive Carriers Association to FCC: Roll Back Privacy Regulations

The Competitive Carriers Association says the Federal Communications Commission has plenty of reason for undoing the October 2016 broadband privacy order, which Internet service providers, advertisers, congressional Republicans and others are pushing for. In reply comments this week on petitions for reconsideration and those opposing them, CCA said those opposing the rule rollback rely on arguments that "deny the reality of the broadband marketplace" and either "ignore or minimize" the authority the FCC will still have over privacy after the order is dispensed with. One of those realities, CCA says, is that the order is uniquely burdensome on smaller providers, who get "very limited relief" from the rules, and only those with 100,000 subs or fewer, which they argue is too narrow a definition.

The FCC under Chairman Ajit Pai in a separate proceeding expanded the carve-out from Open Internet enhanced transparency rules from systems with 100,000 subs or fewer to 250,000 or fewer to accommodate smaller carriers. CCA applauded the Pai FCC's vote to stay the data-security provisions of the broadband privacy order, saying it prevented them "from investing substantial and potentially unnecessary resources towards compliance."

Oracle to Pai: Repudiate Wheeler's Tech-Favoritism Policies

Silicon Valley giant Oracle has asked Federal Communications Commission Chairman Ajit Pai to rethink the FCC's broadband privacy framework, saying former FCC Chairman Tom Wheeler's characterization of Internet service providers as gatekeepers was off the mark and to "repudiate" what it said was the Wheeler FCC's policies "favoring one technology sub-sector over all others." That came in a letter to Chairman Pai asking the FCC not only to rethink the broadband privacy rules but to reclassify internet access as an information service to "eliminate unnecessary burdens on, and competitive imbalances for, ISPs while still preserving the free and open Internet."

The commission is currently collecting comments on a petition by ISPs, advertisers and others to rethink the broadband privacy rules, passed by a politically divided FCC last October with Pai and fellow Republican Michael O’Rielly dissenting. The company praised Chairman Pai for the FCC's vote to stay implementation of the data privacy portion of the broadband privacy rules as well.