Analysis

Court Rejects Stay on FCC’s Reinstatement of UHF Discount – Does it Mean TV Ownership Consolidation is in the Clear?

In a very short one page decision, the US Court of Appeals rejected the requests filed by public interest groups to stay the effect of the Federal Communications Commission’s decision to reinstate the UHF discount. For the foreseeable future, this decision will free many broadcast television groups to acquire more television stations as UHF stations (which most TV stations now are) count for only half their audience reach in assessing compliance with the 39% limit on the national audience share that any TV owner can have.

While, contrary to some press reports, this does not signal the Court’s final approval of the FCC’s decision to reinstate the discount, it does suggest the direction which the Court is likely to take in its assessment of this Commission decision. This decision does not end the case. The public interest groups can continue to pursue their appeal though full briefing and oral argument and a full court decision. However, the rejection of the stay certainly increases the odds that the FCC will ultimately prevail in its defense of the reinstatement of the UHF discount.

There Is No Loophole in the Net Neutrality Rules

One of the stranger ideas going around among the anti-net neutrality crowd (and in the Federal Communication Commission’s proposal to roll back the net neutrality rules) is the idea that the current rules, adopted by the previous FCC, contain a loophole that allows Internet Service Providers to block whatever websites they want to and generally avoid the rules, provided they use the right magic words--namely, that if they simply say ahead of time they intend to violate the rules, they’re no longer subject to them. This is wrong—the rules only cover broadband ISPs, which are defined quite precisely, but there’s no way for an ISP to continue offering what anyone would recognize as “internet access” without being covered by the rules.

US congressional hearings have been turned from a vital part of democracy into a partisan weapon

Once upon a time, public congressional hearings were a means of helping Americans better understand the workings of their government. But the Trump administration and its alt-right allies, aided by the power of the internet, is distorting their role, turning them into fodder for misinformation instead.

The Trump administration and some of the right-wing media are creating a “Putinesque alternate reality,” said John Schindler, a former National Security Agency intelligence analyst, said after former FBI Director James Comey testified. Their commentary didn’t “look like they saw the same Comey testimony that I did,” he said. Instead, their point of view so far has seemed to be: “Nothing happened to cause the president’s arrest today so we’re winning, we’re vindicated, and it’s a Democratic plot.”

This polarization goes much deeper than just the issue of Russian interference.

Sending a strong signal on global internet freedom

[Commentary] Among the range of complex foreign policy issues yet to be addressed by the Trump administration is a serious concern for global internet freedom.

The growing restrictions on internet freedom around the world are easy to document; less so any visible American strategy that would reverse the ominous trends at hand. Let’s review the dimensions of the problem in brief. The latest data from the respected nonprofit organization, Freedom House, provides a contextual understanding, based on tracking global internet freedom in 65 countries, comprising 88 percent of internet users worldwide. According to its most recent annual report in this area, Freedom on the Net 2016, two-thirds of the world’s internet users live under government censorship. Internet freedom around the world declined in 2016 for the sixth consecutive year.

There has been radio silence to date about this issue from the White House and the Department of State. Secretary of State Rex Tillerson should provide both symbolism and substance for a new U.S. global internet freedom agenda in a high-profile address that echoes the words of his predecessor, Hillary Clinton, in a January 2010 speech at the Newseum–“This is a very important speech on a very important subject.” This phrase alone would send a strong diplomatic signal to the international community that the United States still considers internet freedom to be a critical area of foreign policy engagement. Equally important, it would mark the start of an updated internet freedom agenda based on success metrics and aimed at reversing the all-too-apparent downward spiral of repression.

5G, Smart Cities and Communities of Color

This report examines the implications for communities of color of fifth-generation wireless technology (also known as 5G) and Smart City technology. Currently, major mobile network operators, such as AT&T, Sprint, T-Mobile, and Verizon, offer the fourth generation of wireless broadband technology (4G). Over the next four years, these companies will start to offer 5G in select cities. 5G will facilitate the growth of Smart City technologies, which are tools that allow cities and counties to manage public services such as transportation and power grids more efficiently.

“Regulatory Revival” and Employment in Telecommunications

Empirical research demonstrates that the Obama Administration’s aggressive regulatory agenda at the Federal Communications Commission reduced investment in the telecommunications sector between $20 and $40 billion annually, robbing the nation of a boom in network expansion the public wants and Section 706 of the Telecommunications Act mandates.

As there is a direct relationship between network investment and jobs, the next logical question to ask is how this reduced network investment affected employment in the telecommunications sector. Using standard economic techniques and publicly-available data from the Bureau of Labor Statistics, Ford finds that over the period 2010-2016, the telecommunications sector lost approximately 100,000 jobs per year—many of them high-paying union jobs. This loss is the pay-equivalent of about 130,000 “average” US jobs.

Algorithm’s decisions draw increased scrutiny

The world’s 3.6 billion internet users depend on computer algorithms to sort through the vast ocean of information available online. Algorithms follow a set of programmed instructions to transform data into a form that humans can understand, deciding everything from the content of social media feeds to the creditworthiness of borrowers. Though algorithms handle digital data, their decisions also have consequences in the analog world.

In May, a homeowner in Illinois filed a lawsuit against the real estate data website Zillow, alleging that their home value estimator tool significantly undervalued her home and impeded its sale. To protect European citizens when their data is used in “automated decisionmaking”, the European Union enacted new data protection rules last year. This kind of scrutiny may increase with a greater reliance on algorithms to make sense of online data.

The BROWSER Act

[Commentary] On May 18, House Communications Subcommittee Chairman Marsha Blackburn (R-TN) introduced the BROWSER Act (H.R. 2520), legislation that would apply privacy regulations to both Internet service providers (ISPs) and edge providers (e.g., Netflix and Facebook). Most notably, the bill would require companies to obtain users' permission before sharing their sensitive information, including web-browsing history, with advertisers. The legislation is surprising, as it comes just weeks after Blackburn led the vote to repeal the Federal Communications Commission’s privacy protections for broadband subscribers. Below we unpack the BROWSER Act and take a look at what to expect in the weeks ahead.

NCTA Proves Virtuous Cycle Works

[Commentary] Recently, NCTA, the trade association for the industry formerly known as cable, posted this amazing graph and blog post showing that the "virtuous cycle" the Federal Communications Commission predicted would happen when it adopted the Open Internet rules (a.k.a. net neutrality) back in December 2010. Indeed, as the NCTA graph shows (based on the latest Akamai State of the Internet Report), the average speed of broadband connections has not only continued to rise since the FCC first adopted net neutrality rules in 2010, but the rate of increase has accelerated since the FCC adopted the Title II reclassification Order in February 2015. Finally, as NCTA also points out, in the approximately 10 years since the FCC first began to enforce net neutrality through the "Internet Policy Statement" and the Comcast/BitTorrent Complaint, the cost of moving bits from their source to your home has dropped 90 percent on a per bit basis. (Whether we are actually still paying too much because of our lack of competition in the broadband market is something of a different question.)

Perhaps unsurprisingly, this matches the findings from Free Press' Derek Turner in this massive and meticulously documented report, "Broadband Investments And Where To Find Them." But it's still nice to see NCTA confirm it.

Innovators in Digital Inclusion: Free Geek

In 2000, a collective led by Oso Martin recognized the need in Portland, Oregon, for safe disposal and recycling of electronics. Simultaneously, they saw an opportunity to get technology into the hands of those who did not have it. Free Geek began as a simple collection and refurbishment program (and, yes, it was started in a garage). A Free Geek gathering during Portland’s Earth Day celebration brought some formality to the enterprise shortly before it was founded. The new organization soon opened a storefront in an industrial area of Portland, where residents could drop off used tech, and volunteers set to work fixing it up and giving it away. The storefront that opened in a warehouse in the city’s Inner Southeast Industrial District 17 years ago now stretches half of a city block. This location, separated from most of the city’s residents, means that Free Geek must be a destination. Since the beginning, Free Geek’s service model has been structured around community service: volunteer a total of 24 hours and you receive a free computer. This approach fuels the engine, keeps resources available, and keeps people coming in the door. The program expanded so that students may complete 24 hours of any kind of community service in exchange for a computer.