Cecilia Kang

AT&T’s Words on Time Warner Deal Say ‘Underdog.’ Its Actions Speak Otherwise.

In Washington (DC), AT&T has painted itself as an underdog that needs to merge with Time Warner in a blockbuster $85 billion deal to compete with powerful cable companies. But in several cities and states, AT&T’s actions send a different message.

In Nashville and Louisville, AT&T has sued to make it harder for rival broadband providers to use utility poles. In Missouri, Tennessee and North Carolina, the company has pushed for laws that block municipal broadband providers. In San Francisco, AT&T has fought efforts to open up apartment buildings to more internet service providers. In other words, AT&T has positioned itself as the incumbent telecommunications juggernaut that has acted to hamper competitors locally. With its giant deal with Time Warner under review at the Justice Department, AT&T’s contrasting federal and local actions are glaring. While AT&T’s two-sided messaging follows a strategy used by many big companies, any evidence that the telecom company thwarts local rivals could make the deal review tougher and invite costly conditions, telecom antitrust experts said — even though they still expect the acquisition to be approved.

Chairman Pai Moves to Roll Back Telecom Rules

Federal Communications Commission Chairman Ajit Pai is taking the next steps to unwind Obama-era rules and other regulatory efforts that had restricted the abilities of telecommunication companies and broadcasters. With two items up for vote on April 20 that are expected to pass, Chairman Pai is carrying forward a swift Republican attack on telecom rules. The rollback will empower big telecom and media firms that have lobbied aggressively for deregulation, but consumer groups say it may also eventually put consumers at risk of higher prices and fewer options for services and media.

The two specific items to be voted on include a plan to make it easier for broadband providers to charge other businesses higher prices to connect to the main arteries of their networks. The action would clear the way for internet service providers like AT&T and CenturyLink to raise connection fees charged to hospitals, small businesses and wireless carriers in many markets where there is little or no competition for so-called backhaul broadband service. The other item up for vote is a move to ease the limit on how many stations a broadcast television company can own. The action is expected to invite more consolidation in that sector.

At FCC, Obama-Era Rules on Chopping Block

When Congress voted to overturn internet privacy rules in March, the swift action by Republican lawmakers sent a clear message: They were just getting started. The next target is network neutrality, which is the guarantee that all internet content is equally accessible. That could be followed by cuts in broadband subsidies for low-income households and a relaxation in rules preventing media consolidation in local markets.

Republican regulators and lawmakers have been waiting for this moment. Coordinating across the government, they are putting several telecommunications and technology policies created during the Obama Administration on the chopping block. Already, Federal Communications Commission Chairman Ajit Pai, who was appointed to the agency by President Barack Obama and named to lead it by President Trump, has begun chipping away at the low-income broadband subsidy and net neutrality rules created by his Democratic predecessor.

Congress Moves to Overturn Obama-Era Online Privacy Rules

Congress completed its overturning of the nation’s strongest internet privacy protections for individuals in a victory for telecommunications companies, which can track and sell a customer’s online information with greater ease. In a 215-to-205 vote largely along party lines, House Republicans moved to dismantle rules created by the Federal Communications Commission in October.

Those rules, which had been slated to go into effect later this year, had required broadband providers to receive permission before collecting data on a user’s online activities. The action, which follows a similar vote in the Senate, will next be brought to President Donald Trump, who is expected to sign the bill into law. A swift repeal may be a prelude to further deregulation of the telecommunications industry. Broadband companies immediately celebrated the House vote. They promised they would honor their voluntary privacy policies, noting that violations would be subject to lawsuits.

President Trump Appoints One of His Lawyers to Review Mergers

President Donald Trump named Makan Delrahim, a former government antitrust enforcer and corporate lobbyist, to lead the Justice Department’s review of mergers and acquisitions.

The appointment is being closely watched because companies across industries have been hoping that the new Republican administration will be more permissive with mergers. Delrahim, who serves as legal counsel to the president, will be quickly tested in his new position by AT&T’s $85 billion bid for Time Warner. The review of AT&T’s acquisition of Time Warner has drawn speculation because of promises President Trump made on the campaign trail to block the deal. Trump’s disdain for news coverage by CNN, which is owned by Time Warner, has raised questions over whether the president may try to influence the deal. Jeff Sessions, Trump’s attorney general, has promised to block any political influence on Justice Department decisions. Delrahim, whose nomination will go before the Senate for confirmation, is expected to take a more free-market approach to his job of antitrust enforcement, according to analysts. His style is expected to be in line with mainstream Republicans.

Congress Moves to Strike Internet Privacy Rules From Obama Era

Republican lawmakers moved to dismantle landmark internet privacy protections for individuals, the first decisive strike against telecommunications and technology regulations created during the Obama administration and a harbinger for more deregulation to come.

In a 50-to-48 vote largely along party lines, the Senate Republican majority voted to overturn the privacy rules, which had been created in October by the Federal Communications Commission. The move means a company like Verizon or Comcast can continue tracking and sharing people’s browsing and app activity without asking their permission. An individual’s data collected by these companies also does not need to be secured with “reasonable measures” against hackers. The privacy rules, which had sought to address these issues, were scheduled to go into effect at the end of 2017. The vote begins a repeal of those regulations. Next week, the House is expected to mirror the Senate’s action through the same Congressional Review Act procedure that allows Congress to overturn new agency rules. The House is expected to pass the resolution, which would then move to President Donald Trump to sign.

Tech Policy, Too, Is Undergoing a Sea Change

Tech policy has undergone a huge change under President Donald Trump, but it doesn’t seem that a lot of the changes are getting much attention, considering everything else the administration is doing.

In a normal news cycle, the rollback of Obama-era tech policies would get a lot more attention. But make no mistake, the changes coming in privacy, network neutrality and potentially many more tech regulations will be profound. Trump’s chief strategist, Steve Bannon, promised the “deconstruction of the administrative state,” and right away we’ve begun to see that happen. Under the new president we have a new chairman of the Federal Communications Commission, possibly a different standard for antitrust review on big mergers, and maybe lots of money for infrastructure that might seep into the tech economy. Here’s the biggest tech policy changes we’re expecting under President Trump.

How Tech Policies May Evolve Under Republicans and Trump

A Q&A with Senate Commerce Committee Chairman John Thune (R-SD).

With Republicans now in power across the government, Congress has moved aggressively toward undoing Obama-era tech policies. Network neutrality, the rule that ensures equal access to all websites, and broadband privacy rules are the first targets. Lawmakers also hope to play a bigger role than in the last administration on policies of particular concern to Silicon Valley and internet users, including driverless cars and the scaling back of Federal Communications Commission powers concerning broadband providers. Asked, "How do you want to change net neutrality rules?" Chairman Thune responded, "We’re open for business. We think a legislative solution is the best alternative and that the FCC under Chairman Tom Wheeler went too far with regulations that were overreaching and basically classified the internet as a public utility under a 1934 statute. Congress needs to be heard from, or you will have a constant back-and-forth on this issue depending on which party is in the White House."

Trump’s FCC Quickly Targets Net Neutrality Rules

In his first days as President Trump’s pick to lead the Federal Communications Commission, Ajit Pai has aggressively moved to roll back consumer protection regulations created during the Obama presidency.

Chairman Pai took a first swipe at network neutrality rules designed to ensure equal access to content on the internet. He stopped nine companies from providing discounted high-speed internet service to low-income individuals. He withdrew an effort to keep prison phone rates down. In total, the chairman of the FCC released about a dozen actions in the last week, many buried in the agency website and not publicly announced, stunning consumer advocacy groups and telecom analysts. They said Pai’s message is clear: The FCC, an independent agency, will mirror the Trump administration’s rapid unwinding of government regulations that businesses fought against during the Obama years.

“With these strong-arm tactics, Chairman Pai is showing his true stripes,” said Matt Wood, policy director at the consumer group Free Press. “The public wants an FCC that helps people. Instead, it got one that does favors for the powerful corporations that its chairman used to work for.”

Rep Anna Eshoo (D-CA) said, “Ajit Pai is intelligent and genial, but he is not on the side of consumers and the public interest.”

In Washington Pizzeria Attack, Fake News Brought Real Guns

Edgar M. Welch, a 28-year-old father of two from Salisbury (NC) recently read online that Comet Ping Pong, a pizza restaurant in northwest Washington, was harboring young children as sex slaves as part of a child-abuse ring led by Hillary Clinton. The articles making those allegations were widespread across the web, appearing on sites including Facebook and Twitter. Apparently concerned, Welch drove about six hours from his home to Comet Ping Pong to see the situation for himself, according to court documents. Not long after arriving at the pizzeria, the police said, he fired from an assault-like AR-15 rifle. The police arrested him. They found a rifle and a handgun in the restaurant. No one was hurt.

Unbeknown to Welch, what he had been reading online were fake news articles about Comet Ping Pong, which have swollen in number over time. The false articles against the pizzeria began appearing on social networks and websites in late October, not long before the presidential election, with the restaurant identified as being the headquarters for a child-trafficking ring. The articles were soon exposed as false by publications including The New York Times, The Washington Post and the fact-checking website Snopes. But the debunking did not squash the conspiracy theories about Comet Ping Pong — instead, it led to the opposite.

Future of Big Mergers Under Trump? Like Much Else, It’s Unclear

Deal makers took notice in Oct when Donald Trump declared that he would seek to block AT&T’s $85.4 billion bid for Time Warner on the grounds that it would radically concentrate power in too few companies. But after an initial period of turmoil, deal advisers say that it is unclear whether a Trump administration — led by an avowedly pro-business real estate mogul — would really make life difficult for mega-mergers.

At the moment, AT&T’s planned takeover of Time Warner, the biggest merger of the year and one that is poised to reshape the world of media and telecommunications, appears to be the most likely candidate for hazing. The president-elect was among the first politicians to criticize the deal, vowing to block it if he became president. President-elect Trump said it was “an example of the power structure I’m fighting.” He also opposed a similar union between Comcast and NBCUniversal in 2013, which he called “poison.” But antitrust specialists and Republican strategists say a Trump administration may not fulfill his campaign promises.

Trump Expected to Seek Deep Cuts in Business Regulations

Hours after Donald J. Trump won the race for the White House, scores of regulations that have reshaped corporate America in the last eight years suddenly seemed vulnerable. While many questions remain about how President-elect Trump will govern, a consensus emerged in many circles in Washington and on Wall Street about at least one aspect of his impending presidency: President-elect Trump is likely to seek vast cuts in regulations across the banking, health care and energy industries.

The idea of a Trump presidency triggered a sense of dread among many people in the liberal-leaning technology business. Trump is seen as less favorably disposed toward the concentration of power among the handful of large companies that dominate the internet, including Facebook, Google and Amazon, said Glenn Kelman, chief executive of Redfin, an online real estate firm. Trump has called for the rejection of AT&T’s bid for Time Warner. Still, analysts expect that he will appoint antitrust regulators at the Federal Trade Commission and Justice Department who will largely follow traditional Republican approaches to the free market. Trump will be under pressure by major telecom and cable firms to roll back aspects of net neutrality. The rule inhibits how broadband providers manage traffic on their networks to ensure any website is equally accessible to consumers. Telecom and cable firms continue to challenge the rules in court and Mr. Trump, with the encouragement of Republicans in Congress, may seek to abandon the regulation.

One Last Growl for FCC’s Sharp-Toothed Watchdog, Tom Wheeler

As Tom Wheeler enters his last few months as head of the Federal Communications Commission during the Obama Administration — the next President is expected to name a new chairman — he has turned early supporters into foes and invited an expensive lobbying battle that may stymie a last-ditch pursuit of regulations that starts on Oct 27, including voting on a proposal for broadband privacy protections.

Wheeler’s last act as chairman could be overseeing the review of AT&T’s $85 billion bid for Time Warner, a mega-media deal that has already elicited protests from some politicians and consumer advocacy groups. AT&T and Time Warner will most likely try to avoid an FCC review by selling off the small number of broadcast television assets owned by Time Warner. Yet some say that even if Chairman Wheeler does not directly review the deal, his regulations have created new restrictions for AT&T and other broadband companies at a time when they are trying to find new growth beyond their internet businesses.

AT&T Set to Lobby for Merger With Deep Pockets and a Big Network

AT&T, in addition to its billions of dollars of capital, has another arsenal at its disposal: one of the most formidable lobbying operations in Washington. The company’s list of nearly 100 registered lobbyists already on retainer in 2016 includes former members of Congress. AT&T is the biggest donor to federal lawmakers and their causes among cable and cellular telecommunications firms, with its employees and political action committee sending money to 374 of the House’s 435 members and 85 of the Senate’s 100 members this election cycle. That adds up to more than $11.3 million in donations since 2015, four times as much as Verizon Communications, according to a tally by the Center for Responsive Politics, a nonprofit research group. AT&T has also spent decades building a national alliance of local government officials and nonprofit groups — particularly from black and Hispanic communities — that it will certainly be asking to weigh in again in Washington, as it tries to get the merger approved.

“We have seen our fair share of deals,” said AT&T’s general counsel, David R. McAtee II. “Our job is informing consumers what a good development this is for them.” But navigating this transaction will be a test of just how much influence AT&T has in Washington these days. That is particularly the case as AT&T’s lobbying team undergoes a transition after losing its longtime leader, James W. Cicconi, a former aide to President George H. W. Bush.

Regulatory Microscope Lies Ahead for AT&T and Time Warner

A cable and internet provider decides to buy an entertainment conglomerate. The merger is met with skepticism by industry analysts and outrage by consumer groups, who complain that it would thwart competition, create unfair pricing and incite more media consolidation. That was 2009, when the cable giant Comcast announced it would acquire NBC Universal. When the next administration in Washington takes up the $85.4 billion deal between AT&T and Time Warner, the Comcast acquisition will be used as the lens to examine the changing media landscape.

In the end, the Justice Department and the Federal Communications Commission approved the acquisition of NBCUniversal, requiring some small management concessions but few divestitures. But AT&T and Time Warner will probably face a much sterner test. With a huge wireless business, too, the combination would be a new kind of media juggernaut. Donald Trump has already condemned the deal. Campaigning in Gettysburg, he Trump said he would block it if he were president, “because it’s too much concentration of power in the hands of too few.” Hillary Clinton, meanwhile, has promised to be tough on corporate megapowers and consolidation. Regardless of who wins next month, the AT&T acquisition of Time Warner will be among the biggest and most important regulatory cases to await the next administration. The merger would make AT&T unmatched in its size and reach to consumers through smartphones, home broadband, satellite television and a broad portfolio of cable channels and movies. For that reason, it may raise more cautionary flags than Comcast’s merger with NBCUniversal, which did not involve a wireless carrier.

Free Broadband Initiatives for Poor and Rural Areas, With Eye on Future

There is an axiom in technology: New products typically go to wealthy customers first, before prices eventually fall to reach the masses. With broadband now classified as a utility, telecommunication and tech companies including Sprint, Comcast and Facebook are increasingly working to make high-speed Internet accessible to every American, not just a luxury. The companies are among those that have set their sights on bringing free or cheap high-speed Internet service to low-income and rural populations in the United States, spurred by philanthropy and, for some, the hope of turning Americans who are not online today into full-paying customers in the future.

Those goals were on display, when Sprint announced that it plans to give one million low-income high school students a free device and a free high-speed data plan until graduation. Facebook is also working to bring to the United States a service known as Free Basics, which gives people free access to certain websites, including Facebook. Comcast recently loosened requirements for its low-cost broadband service, expanding it to anyone in public housing. These moves go toward closing what has been an intractable divide between broadband haves and have-nots. Low-income broadband programs have been vital to closing the digital divide, where half of all low-income Americans lack broadband, said Mignon Clyburn, a commissioner at the Federal Communications Commission. “Lowering the price for service has been instrumental in bringing millions online,” Commissioner Clyburn said.

A Choice Beyond Cable Box Rentals? It May Hinge on a Swing Voter

When the Federal Communications Commission announced a plan that would free people from having to rent cable set-top boxes, the cable and television industries balked and lobbied hard to forestall the proposal. But it turns out the biggest threat to the plan, which the FCC is expected to vote on Sept 29, is a low-profile Democratic commissioner within the agency itself.

Jessica Rosenworcel, a career telecom wonk whom President Obama appointed to the FCC in 2012, has become the crucial swing vote on the cable box proposal. She is one of three Democrats of the agency’s five rule-making members, which would normally be enough to carry a vote since commissioners typically act in line with their parties. But Commissioner Rosenworcel has not fully embraced the cable box proposal like her two Democratic colleagues and instead has indicated her unease with the plan. Rosenworcel’s concerns hinge on what she views as what may be too much meddling by the FCC in the private agreements between cable providers and device makers. However, consumer groups say the FCC needs to play an oversight role in those licensing deals to ensure fairness. Commissioner Rosenworcel believes that the market for costly set-top boxes required reform. But she said the cable box proposal needed to be revised to comply with copyright and licensing laws that would not give the FCC outsize power.

Ted Cruz Fights Internet Directory’s Transfer; Techies Say He Just Doesn’t Get It

Senator Ted Cruz (R-TX), who once led a government shutdown in his efforts to defund President Obama’s health care law, has turned his sights on a more obscure target: the federal government’s plan to end its oversight of the internet’s master directory of website addresses.

Sen Cruz does not appear to have the ability to inspire another insurgency so close to an election that will determine control of the Senate. He may not have the interest either. His technical theories about the registration of domain names — the “.net” and “.world” suffixes of internet addresses — have been discredited by engineers. But his move to block the Obama administration through a short-term spending bill needed to keep the government open past Sept. 30 demonstrates that the former Republican presidential candidate remains eager to keep his name in lights, even at the expense of his colleagues’ efforts to get back to the campaign trail.

Broadband Law Could Force Rural Residents Off Information Superhighway

The United States Court of Appeals for the Sixth Circuit upheld restrictive laws in North Carolina and Tennessee that will halt the growth of municipal broadband networks. While the decision directly affects only those two states, it has cast a shadow over dozens of city-run broadband projects started nationwide in recent years to help solve the digital divide.

In siding with the states, the court hobbled the boldest effort by federal officials to support municipal broadband networks. While the court agreed that municipal networks were valuable, it disagreed with the Federal Communications Commission’s legal arguments to pre-empt state laws. Now, cities like Wilson (NC) fear they have little protection from laws like those in about 20 states that curb municipal broadband efforts and favor traditional cable and telecom firms. City officials say cable and telecom companies that have lobbied for state restrictions will be encouraged to fight for even more draconian laws, potentially squashing competition that could lead to lower prices and better speeds to access the web. “This is about more than North Carolina and Tennessee,” said Deb Socia, executive director of Next Century Cities, a nonprofit coalition of cities exploring broadband projects. “We had all looked to the FCC and its attempt to pre-empt those state laws as a way to get affordable and higher-quality broadband to places across the nation that are fighting to serve residents and solve the digital divide.”

How to Give Rural America Broadband? Look to the Early 1900s

A look at a trend unfolding in hard-to-reach rural spots nationwide. For years, such communities have largely been left out of the digital revolution because they had only intermittent internet access, often through a patchwork of satellite, dial-up or wireless service. Telecom and cable companies shunned the areas because it was too expensive to bring equipment and service over long distances to so few people. Now high-speed internet is finally reaching these remote places, but not through the telecom and cable companies that have wired most of urban America. Instead, local power companies are more often the broadband suppliers — and to bring the service, they are borrowing techniques and infrastructure used to electrify the United States nearly a century ago. In some cases, rural municipalities are also using electrification laws from the early 1900s to obtain funds and regulatory permissions reserved for utilities, in order to offer broadband.

FTC sues Amazon over children’s in-app purchases

Federal regulators announced it has filed a lawsuit against Amazon.com for allegedly making it too easy for children to make purchases when using mobile apps without a parent's permission.

The Federal Trade Commission said Amazon charged parents millions of dollars of unauthorized payments for what's known as "in-app purchases," typically make-believe items popularly offered within mobile games such as Candy Crush Saga that enhance a game or allow a user to advance levels.

The FTC said in its suit that it seeks a court order for the company to refund families affected by the unauthorized charges that began in 2011. It also wants the court to permanently ban Amazon from charging parents for in-app purchases without their consent. Amazon, whose chief executive Jeffrey Bezos owns The Washington Post, did not immediately respond to a request for comment.

The FTC alleges that beginning in November 2011, Amazon violated the FTC Act by billing parents for charges incurred by their children without permission. Amazon's Kindle Fire tablet was used by children to play games and spend "unlimited amounts of money" to pay for virtual items within the apps such as “coins,” “stars,” and “acorns” without parental involvement, the agency wrote. The FTC said that at first, no password requirements were put in place to stop children from making the purchases.

Merger mania in media? Cable companies could be just the start

The massive cable and telecom mergers under review may just be the start of a broader wave of consolidation to hit the entertainment industry.

Rumors are rife that Time Warner is negotiating with Vice Media, the magazine-turned-media company now known for producing edgy documentaries that air on HBO. Viacom could rejoin CBS, which it split from nearly a decade ago. Univision may be seeking a buyer and has been in talks with Time Warner and CBS, according to the Wall Street Journal.

Some lawmakers and analysts say it's inevitable that television programmers will bulk up to stand up against demands from increasingly powerful cable and telecom distributors like Comcast who want to lower their costs for programming.

Here’s how people are watching the World Cup -- without cable

Like many popular television programs, online viewing is still only available to those who can prove they also subscribe to cable or satellite television bundles of channels.

That's true for many sports programs and HBO hits such as "Game of Thrones."

But increasingly, consumers are finding ways to defy the requirements of cable companies. And a niche industry has emerged offering software that helps consumers cut the cable cord but still get the content they want online. “Tired of cable? Cut the cord! Learn how to watch LIVE sports without cable here," software company Ghost Path VPN marketed on its blog and through tweets and messages on Facebook.

Through a simple software download, consumers can create virtual private networks that mask or change one's location. The VPN services have also become popular for consumers seeking privacy and security against hackers.

The use of VPNs to watch sports programs do not violate copyright laws, according to John Bergmeyer, a staff attorney at Public Knowledge. But ESPN or other networks with distribution rights to the programs could determine that use of "geo-blocking" services like VPNs violate their terms of service, he said.

Cable forces more channels down unwilling viewers’ throats

It's become a cliché: "Why am I forced to buy more cable channels I never watch?"

Now, new data show the common consumer complaint is true.

In 2013, US cable subscribers got a record average of 189 channels in prepackaged bundles but watched only 17 of those channels, according to a report by Nielsen. And the appetite to view more channels, even when offered vastly more television content, hasn't changed much in years.

In five years, cable companies added 60 more channels for the typical subscriber, but viewers haven't increased their consumption of new content. They have consistently watched an average of 17 channels.

"This data is significant in that it substantiates the notion that more content does not necessarily equate to more channel consumption," the Nielsen report said. "And that means quality is imperative — for both content creators and advertisers. So the best way to reach consumers in a world with myriad options is to be the best option."