Hill, The

Sen McCaskill eyes measure to combat TV bills

Sen Claire McCaskill (D-MO) is working on legislation to ban misleading and unfair cable and satellite television bills, and she’s looking to consumers for the worst offenders.

Sen McCaskill asked consumers to visit her website and log their complaints if “they have experienced deceptive, or confusing billing practices” from cable and satellite companies.

"Consumers in every corner of the country share common experiences about fending for themselves against confusing, deceptive billing practices by cable, satellite and other pay-TV companies-and I want to hear their stories," Sen McCaskill, chairwoman of the Senate Commerce Subcommittee on Consumer Protection, said.

Sen Leahy: Cellphone ruling is ‘wake-up call’

The Supreme Court’s ruling that police need a warrant to search someone’s cellphone is a “wake-up call” for Congress to act on other kinds of digital privacy, Sen Patrick Leahy (D-VT) said.

“The Supreme Court’s decision in US v. Wurie and Riley v. California is a wake-up call that we need to update our laws to keep pace with technological advances,” he said shortly after the high court’s unanimous ruling. “Just as the government must now obtain a warrant to look through the contents of our cell phones, I believe the same standard should apply when the government wants to look through our emails.”

Sen Leahy’s bill “updates our digital privacy laws to keep pace with new technologies, protect civil liberties, and provide guidance to law enforcers,” he said. “Congress should act swiftly to pass this bill and bring our privacy laws into the 21st Century.”

Sen Thune sets stage for Senate communications law overhaul

The top Republican on the Senate Commerce Committee is pushing for Congress to overhaul the law governing the Internet, television and phone service. Sen John Thune (R-SD) said that the Senate would likely begin work to update the law in 2015, and seemed to shine on the notion that Republicans would have taken control of the upper chamber.

The Telecommunications Act outlines the authority of the Federal Communications Commission and sets the path for regulating phone, Internet and TV service. But it was written back in 1996, when dialup Internet allowing access to just a few thousand websites was still a luxury. “Back then, you had to pay for Internet by the hour and going online meant tying up your home phone line,” Sen Thune said.

Critics have said that the law created inefficient silos for different types of communications services such as television and the Web, which have posed problems for regulators dealing with modern technologies like broadband Internet. Some Democrats have urged the FCC to regulate the Web like phone service, but Republicans have rejected that view, which they warn would impose strict rules for Internet service providers and would limit its growth.

To settle the issue, Sen Thune said that Congress should make itself clear in a new law.

E-rate reform: A sustainable path forward for school and library connectivity

[Commentary] A year ago, President Barack Obama unveiled the ConnectED initiative, declaring that his goal was to connect virtually every school in the United States to high-speed Internet by the end of the decade.

A key piece of the Administration's plan is reforming the Federal Communications Commission's E-rate program, which subsidizes communications services for schools and libraries across the country.

Earlier in June, a diverse coalition of over 100 organizations from the education sector, technology, and business communities (including the New America Foundation's Open Technology Institute and Education Policy Program) sent a letter to the FCC urging the agency to modernize and expand the E-rate program. The letter outlines a series of joint recommendations which include upgrading E-rate to provide schools and libraries not just with Internet connectivity but also sufficient capacity to use new digital learning tools; prioritizing funding to support both high-speed broadband to the premises and ubiquitous Wi-Fi connectivity over other, outdated technologies; incentivizing schools and libraries to purchase connectivity more efficiently; and simplifying the program to streamline the application process.

The letter also urges the FCC to set clear targets for connectivity moving forward, to improve data collection practices and program transparency, and to commit to reviewing E-rate's goals every four years. The proposed reforms would address some of these concerns but not all. Focusing on infrastructure investments is the key to E-rate's ability to meet the goal of providing a gigabit of capacity per 1,000 students by the end of the decade.

While Wi-Fi upgrades are needed so that students, teachers and library patrons can access the Internet on their individual devices, these improvements must be made in conjunction with significant investments in broadband infrastructure that increase overall capacity at their institutions.

[Kehl is a policy analyst; Morris is a senior policy counsel, for the Open Technology Institute at the New America Foundation]

Broadcasters defend radio stations’ free music

Broadcasters are defending radio stations’ ability to play music without paying musicians as Congress looks to update the copyright system. The National Association of Broadcasters released a new study arguing that musicians sell more songs when radio stations play those songs.

"This study highlights clearly the enormous value that radio airplay provides in promoting music and generating music sales," NAB Executive Vice President of Communications Dennis Wharton said. “Local radio remains the premiere platform for exposing new music and generating sales for record labels."

According to the study -- conducted by Nielsen and commissioned by NAB -- increased radio airplay has “an immediate” impact on a song’s sales and drives on-demand streaming of that song. The study noted to a strong correlation between radio airplay and sales, which is even stronger for country, Latin and Top 40 music.

The study also pointed to a previous Nielsen study, which found that 61 percent of people discover new music through AM/FM radio stations. Currently, AM/FM radio stations do not pay musicians to play their songs over the air, a facet of the current copyright system that some lawmakers are determined to change.

Microsoft exec: US hypocritical on privacy abroad

Microsoft’s top lawyer is warning that US government surveillance could open the door for other countries to try to spy on data stored by tech companies in the US.

Microsoft General Counsel Brad Smith criticized the US government’s attempts to compel American tech companies to hand over data about foreign users stored abroad. He pointed to a US warrant for information about a person in Europe that was being stored at the company’s data center in Ireland.

“If the data is in the US, it’s subject to the reach of US law,” but if the data is stored in a data center in a foreign country, it is subject to that country’s laws, Smith said. If the US goes after data stored abroad, other countries will be emboldened to pursue data stored in the US, he continued.

“If we want to protect the rights of Americans for data that exists in the US, we has a country need to pursue principles” that are agreed to and applied globally, he said. Rather than “deputizing” tech companies to spy on their users for government surveillance, the US should turn to established legal processes, Smith said.

Senate panel to move on cybersecurity bills

Senate Homeland Security Chairman Tom Carper (D-DE) introduced two cybersecurity bills that will advance to a vote in the panel. The pair of bills should make it easier for government agencies and private companies to share information about hackers and focus federal efforts towards preventing stopping major hacks, Sen Carper said.

“Cybersecurity is one of our nation’s biggest challenges,” he said. “While our work in this area is far from finished, these bills are an important step in our effort to modernize our nation’s cybersecurity programs and help the public and private sectors work together to tackle cyber threats more effectively in the future.”

The National Cybersecurity and Communications Integration Center Act would codify an existing cybersecurity center run by the Homeland Security Department and make sure that it operators as a sort of clearinghouse for the issue. The Federal Information Security Modernization Act would reshuffle administrative roles and put more focus on stopping data beaches.

AT&T’s merger bid gets warm reception in House

Members of Congress gave a warm reception to AT&T’s $49 billion proposal to buy DirecTV and suggested regulators should let the deal proceed.

Executives from the TV and Internet companies told lawmakers that they need to combine in order to stay competitive with rivals such as Comcast and Verizon, and members from both sides of the aisle seemed to agree.

Rep Hank Johnson (D-GA), the ranking member on the House Judiciary’s Antitrust subcommittee, said “the bulk of the evidence demonstrates that each company primarily serves different markets with different services,” which should protect them from fears about antitrust violations.

“Although the proposed merger represents a concerning trend towards industry consolidation, there is ample evidence that this transaction would create considerable public-interest benefits,” he said. Judiciary Chairman Bob Goodlatte (R-VA) indicated that federal regulators ought to butt out and let the merger move forward.

“It has been demonstrated repeatedly that a free and competitive marketplace yields lower prices, greater innovation, increased investment and better services,” he said. “We should strive to ensure that proposed transactions result in enhanced competitive marketplaces so that the attendant benefits continue to run to consumers.”

AT&T and DirecTV executives faced members of the House and will then head to a follow-up in the Senate later.

Stronger union could be key in AT&T merger

AT&T’s $49 billion plan to buy DirecTV could strengthen the company’s union, a move that is getting Democratic nods of approval on Capitol Hill.

“This transaction presents substantial opportunities for labor standards,” Rep Hank Johnson (D-GA) said in a hearing on the planned merger. “I know everybody doesn’t agree that that is something that is worthy, but I think that is very worthwhile.”

“Given the television industry’s famous reputation for opposing organized labor, this merger would have transformational benefit for thousands of employees in this industry, giving labor a strong foothold in the industry,” added Sen Johnson, the top Democrat on the House Judiciary subcommittee on antitrust.

AT&T currently has the largest full-time, private union in the United States with 41,000 members. If regulators allow the phone and Internet company to buy DirecTV, that option would extend to the satellite TV firm's 16,000 employees.

“We have a long history of working with our union members and collective bargaining,” AT&T Chairman Randall Stephenson told lawmakers. “So with DirecTV, you should assume that DirecTV employees will be offered that same option to collectively bargain or not," he said. "That will be their choice.”

AT&T claims merger is about ‘consumer demand’

AT&T and DirecTV executives will make the case to lawmakers that the proposed $49 billion deal to merge the two companies is necessary to stay competitive.

“This transaction is about meeting consumer demand,” AT&T CEO Randall Stephenson told members of the House Judiciary’s Antitrust subcommittee in his prepared testimony. “It’s about providing consumers with the integrated video and broadband Internet services they want, delivered over any type of device, to nearly anywhere in the country.”

AT&T offers phone and Internet service, but its television offerings do not turn a profit and “cannot meet the needs of enough consumers,” Stephenson claimed, noting that the company’s U-verse service operates in less than one-quarter of the country. And even in those markets, AT&T doesn’t have the “scale” to “to forge strong relationships with programmers and compete effectively against the dominant cable companies,” he said.

DirecTV, which has about 20 million TV subscribers in the US but no Internet service, needs the deal in order to keep up with the changing market, the satellite company’s chief executive Michael White added.

“If we want to compete effectively in today’s Internet-driven marketplace, we must adapt,” he claimed in prepared testimony. That means “integrated bundles” of TV and Internet service, like the deals offered by competitors at Comcast and Time Warner Cable, as well as the ability to offer subscribers chances to watch television online with companies like Netflix.