Daily Digest 11/13/2018 (Trump Midterm and More)

Benton Foundation
Table of Contents

Elections

The Trump Midterm: Looking at the 116th Congress  |  Read below  |  Robbie McBeath  |  Analysis  |  Benton Foundation
Donald Trump Played Central Role in Hush Payoffs, Violating Campaign Finance Laws  |  Read below  |  Joe Palazzolo, Nicole Hong, Michael Rothfeld, Rebecca Davis O'Brien, Rebecca Ballhaus  |  Wall Street Journal
Russian Hackers Largely Skipped the Midterms, and No One Really Knows Why  |  Read below  |  Dustin Volz, Robert McMillan  |  Wall Street Journal
Tech policy and the midterm elections: Did our assessment prove true?  |  Read below  |  Roslyn Layton  |  Analysis  |  American Enterprise Institute
Election Payoff: Tribune Grabs $42.5M From Political Ads  |  MediaPost
As Florida Races Narrow, President Trump And Gov Scott Spread Claims Of Fraud Without Evidence  |  National Public Radio

Agenda

Agenda for the 116th Congress: Bring Back Consumer Protection and a Fair Marketplace  |  Read below  |  Chris Lewis  |  Analysis  |  Public Knowledge
Democrats to probe President Trump for targeting CNN, Washington Post  |  Read below  |  Mike Allen, Jim Vandehei  |  Axios

Broadband

The Supreme Court and House Democrats breathe new life into net neutrality  |  Read below  |  Tom Wheeler  |  Analysis  |  Brookings Institution
Cities (and States) are Doing it for Themselves  |  Read below  |  Gigi Sohn  |  Speech  |  Benton Foundation
Negotiating with ISPs: Don’t accept broadband price hikes without a fight  |  Ars Technica

Wireless

Despite sky-high expectations, wireless capital expenditures show signs of sluggishness  |  Read below  |  Mike Dano  |  Fierce
Why San Jose Kids Do Homework in Parking Lots  |  Read below  |  Mayor Sam Liccardo (D-San Jose)  |  Op-Ed  |  New York Times
FCC Commissioner Carr, San Jose Mayor Spar Over 5G  |  Read below  |  Cristiano Lima  |  Politico
Rural Kids Face an Internet 'Homework Gap.' The FCC Could Help  |  Read below  |  Chris Berdik  |  Wired
Control over security is prompting big industrial companies to explore private 5G wireless networks  |  NetworkWorld
Microsoft Airband Partner Added in Northwest, Aims to Reach 73K with Fixed Wireless  |  telecompetitor
New Intel 5G Modem is Single Chip Design, Will Support 4G and 5G with up to 6 Gbps Speeds  |  telecompetitor
New Verizon 5G Lab will drive the development of 5G use cases for public safety  |  Verizon

Ownership

ACA: DOJ Needs to Keep Leash on Comcast/NBCU  |  Read below  |  John Eggerton  |  Multichannel News
Fortune Magazine Sold to Thai Businessman for $150 Million  |  New York Times

Platforms/Content

PayPal is canceling accounts used by the Proud Boys, Gavin McInnes, and antifa groups  |  Vox

Privacy

34 Civil Rights, Consumer, and Privacy Organizations Unite to Release Principles for Privacy Legislation  |  Read below  |  Shiva Stella  |  Press Release  |  Public Knowledge
Public Knowledge Files Comments Urging NTIA to Protect Consumer Privacy  |  Public Knowledge
Silicon Valley to NTIA: Federal Privacy Law Should Trump States  |  Read below  |  John Eggerton  |  Broadcasting&Cable
Facebook Failed to Police How Its Partners Handled User Data  |  Read below  |  Nicholas Confessore, Michael LaForgia, Gabriel Dance  |  New York Times
With nothing but a smartphone and some clever computation, researchers can track individuals in their own homes  |  Technology Review

Security

US Declines to Sign Declaration Discouraging Use of Cyberattacks  |  New York Times
Microsoft, Google apps feature in the top 20 vulnerabilities in enterprise environments  |  ZDNet
Two former spooks are heading to Congress — say they’re ready to use expertise to help push forward new cybersecurity policies  |  Washington Post

Journalism

AT&T CEO Randall Stephenson Criticizes White House Over Handling of CNN Reporter Jim Acosta  |  Wall Street Journal
Minnesota holds its own as small-town newspapers shrink across America  |  Minneapolis Star Tribune
Op-Ed: Five myths about cable news  |  Washington Post

Government & Communications

President Trump calls April Ryan a 'loser,' threatens to revoke more press credentials  |  Read below  |  Jordan Fabian, Michael Grynbaum  |  Hill, The, New York Times
Rep Steve King (R-IA) accuses Weekly Standard of trying to ‘advance a Leftist agenda’  |  Hill, The
Jack Shafer: President Trump Can’t Fire CNN  |  Politico
Rep. Ro Khanna (D-CA) defends Google's controversial decision to end Pentagon AI 'Project Maven'  |  Washington Post

Advertising

DOJ Weighs in on Viamedia v. Comcast But Doesn’t Undermine Judge’s Decision to Dismiss the Advertising Case  |  Multichannel News

Research

National Science Foundation Seeks Feedback on Major Cyber Research Priorities Update  |  nextgov
The US now has the two fastest supercomputers in the world  |  Vox

Company News

Vice Media Bubble Burst as Disney Writes Down Nearly 40 Percent of Investment After 3 Years  |  Wrap, The

Facebook Joins Google to End Forced Arbitration for Sexual-Harassment Claims  |  Wall Street Journal

Amazon Picks New York City, Northern Virginia for Its HQ2 Locations  |  Wall Street Journal

What makes New York attractive to the tech industry  |  Washington Post

Stories From Abroad

The Ultimate Guide to Internet Censorship  |  WizCase
Facebook will let French regulators study its efforts to fight hate speech  |  Washington Post
At Web Summit, support for protecting user data and regulating social media  |  USA Today
Today's Top Stories

Elections

The Trump Midterm: Looking at the 116th Congress

Robbie McBeath  |  Analysis  |  Benton Foundation

Tuesday, Nov 6 was Election Day in the United States. At the national level, Republicans kept control of the US Senate, while Democrats won enough seats to win control of the US House of Representatives.  At Headlines, we keep a close eye on two key Congressional committees because of their jurisdiction over many telecommunications issues and oversight of the Federal Communications Commission: 1) the Senate Commerce Committee and 2) the House Commerce Committee's Communications and Technology Subcommittee. What did we learn about the new Congress? Below we take a look at who’s leaving these key committees and what impact that will have on telecommunications and media policy in 2019. 

Donald Trump Played Central Role in Hush Payoffs, Violating Campaign Finance Laws

Joe Palazzolo, Nicole Hong, Michael Rothfeld, Rebecca Davis O'Brien, Rebecca Ballhaus  |  Wall Street Journal

As a presidential candidate in August 2015, Donald Trump huddled with a longtime friend, media executive David Pecker, in his cluttered 26th floor Trump Tower office and made a request. 'What can you do to help my campaign?' he asked, apparently. Pecker, chief executive of American Media Inc., offered to use his National Enquirer tabloid to buy the silence of women if they tried to publicize alleged sexual encounters with Trump. Less than a year later, Trump asked Pecker to quash the story of a former Playboy model who said they’d had an affair. Pecker’s company soon paid $150,000 to the model, Karen McDougal, to keep her from speaking publicly about it. Trump later thanked Pecker for the assistance. Trump intervened directly to suppress stories about his alleged sexual encounters with women. Accounts in this case raise the possibility that President Trump violated federal campaign-finance laws. Trump was involved in or briefed on nearly every step of the agreements. He directed deals in phone calls and meetings with his self-described fixer, Michael Cohen, and others. The US attorney’s office in Manhattan has gathered evidence of Trump’s participation in the transactions.

Russian Hackers Largely Skipped the Midterms, and No One Really Knows Why

Dustin Volz, Robert McMillan  |  Wall Street Journal

After unleashing widespread cyberattacks and disinformation warfare on the US during the 2016 presidential election, Russia’s trolls and hackers mostly appeared to have sat on the sidelines during the campaign ahead of the midterm elections. No one is sure why.  Several factors may have reduced Moscow’s impact. Clint Watts, a senior fellow with the Foreign Policy Research Institute, said the diffuse nature of congressional and state races makes them a harder target than a single presidential election. Others, including several Trump administration officials, said efforts to deter foreign hackers and send a message to Russia that election meddling wouldn’t be tolerated may have paid off. Still a third possibility, experts say: Russian President Vladimir Putin, figuring he had successfully inflamed political divides and undermined confidence in American democracy, may have been content to kick back and watch others do the work for him. Political discourse within the US has become increasingly polarized and filled with disinformation, much of it created by partisans

Tech policy and the midterm elections: Did our assessment prove true?

Roslyn Layton  |  Analysis  |  American Enterprise Institute

My report “Tech Policy and the Midterm Elections” examined the role of tech policy in the election and whether the issue of net neutrality would encourage millennials to vote. Correct assessment: Tech policy doesn’t drive voters to the ballot box. According to the Edison NBC News poll, the key issues for voters were health care (41 percent of voters), immigration (23 percent), the economy (21 percent), and guns (11 percent). As I noted in my report, this follows the conventional wisdom on midterm polls and Pew’s longitudinal poll of policy priorities over the past decade, showing that no internet policy issue, including net neutrality, entered into the top 40 issues for voters. Net neutrality may offer a compelling narrative for symbolic political communication, but internet freedom will lead to more economic growth and benefit more Americans.

Agenda

Agenda for the 116th Congress: Bring Back Consumer Protection and a Fair Marketplace

Chris Lewis  |  Analysis  |  Public Knowledge

There is a new political reality in Washington. A Democratic Party takeover of the House of Representatives has created divided government again. We can only hope that the newly divided government can create the space for clear action to meet our challenges. Both parties are now truly responsible for governing, and although many of the moderates have retired or been defeated, the needs for protection-creating policymaking is felt equally in the most conservative and liberal districts. There’s also hope that the influx of new members brings a class of younger, tech-savvy legislators. Members of Congress are elected based on a broad range of issues and so while Congress must act, it cannot always act both quickly and in great detail. Delegation to expert agencies has traditionally assisted with this challenge and is essential to keep up with the pace of innovation. Perhaps the greatest challenge to seeing movement on these issues is the short legislative calendar and the pull of other priorities, from renewed fights around healthcare to investigations of the Trump Administration. To overcome this, everyday Americans will need to become more engaged in the details and the advocacy around tech and communications policy. Another two years of weakening protections and inactive legislators will only enable consumer ripoffs to flourish. Now is the time for Congress to revive consumer protection and marketplace fairness through legislation and FCC oversight.

Democrats to probe President Trump for targeting CNN, Washington Post

Mike Allen, Jim Vandehei  |  Axios

House Democrats plan to investigate whether President Donald Trump abused White House power by targeting — and trying to punish with "instruments of state power" — the Washington Post and CNN, said incoming-House Intelligence Committee Chairman Adam Schiff (D-CA). Rep Schiff said President Trump "was secretly meeting with the postmaster [general] in an effort to browbeat the postmaster [general] into raising postal rates on Amazon." "This appears to be an effort by the president to use the instruments of state power to punish Jeff Bezos and the Washington Post," Rep Schiff said. Rep Schiff said Congress also needs to examine whether Trump attempted to block AT&T’s merger with Time Warner as payback to CNN.

Broadband

The Supreme Court and House Democrats breathe new life into net neutrality

Tom Wheeler  |  Analysis  |  Brookings Institution

The activities of the past week have reshaped the future of network neutrality and the strategy for protecting that future. On Nov 5, the Supreme Court declined to review the decision of the DC Circuit Court that twice upheld the 2015 Open Internet Rule. The second development was the Democrats taking control of the House of Representatives. 

On Feb 1, 2019 the DC Circuit will hear oral arguments on the lawsuit challenging the Trump Federal Communications Commission’s elimination of the Open Internet Rule. Here is where things start to get interesting in light of the recent Supreme Court decision. If the DC Circuit rules against the FCC and vacates the 2017 elimination of the rules, then the 2015 Open Internet Rule is reinstated—and the Supreme Court has declined to consider the matter for now. There is a strong case that the Trump FCC acted in an arbitrary and capricious manner when it repealed the 2015 Open Internet Rule and walked away from any responsibility over the most important network of the 21st century. If the DC Circuit makes such a finding, net neutrality would once again be the law of the land. Although the Trump FCC would probably spitefully ignore its enforcement and even force adoption of a new rule to free the broadband companies, that action would simply bolster the Democrats in the House.

In the meantime, the House Democrats can hold a series of hearings to bring forth into the public record the information the Trump FCC and the Republican-led Congress has chosen to ignore. Any push for meaningful legislation will probably meet the opposition of the companies and their Republican allies, but the recent Supreme Court decision and a Democratic House-led push for truth will keep net neutrality alive.

[Tom Wheeler served as the 31st chairman of the Federal Communications Commission from 2013-2017.]

Cities (and States) are Doing it for Themselves

Gigi Sohn  |  Speech  |  Benton Foundation

No matter who you voted for or what party you belong to, I think we can agree on one thing - access to high-speed broadband is one of the most important issues in the US today. In Congressional race after Congressional race, in Maine, Vermont, Virginia, Ohio, Tennessee, Colorado, Michigan, and New Mexico, just to name a few, voters said that broadband access was a top three issue, sometimes coming after health care and jobs, and other times, like in Vermont, coming in as the number one concern for voters. There’s a strong consensus that one must be connected to broadband in order to participate fully in our society, our economy and our culture. But while the Trump Administration and Congress addressed health care and jobs in its first two years, it has done little to ensure that every American is connected to high-speed broadband Internet. I have no doubt that the most important work to ensure that all Americans have access to affordable, high speed broadband is happening in local communities like Chicopee and Taunton, Massachusetts, Longmont Colorado, Imperial County California, Fairlawn Ohio and Kent County Maryland.

[Gigi B. Sohn is a Distinguished Fellow, Georgetown Law Institute for Technology Law & Policy and Benton Senior Fellow and Public Advocate]

Wireless

Despite sky-high expectations, wireless capital expenditures show signs of sluggishness

Mike Dano  |  Fierce

At the start of 2018, a wide array of analysts predicted a dramatic upswing in the amount of money wireless network operators would spend improving their networks this year compared with spending in previous years. Indeed, the analysts at Deutsche Bank Research in February predicted nationwide carriers would increase their overall capex during 2018 by 14% over last year to $30.5 billion—which they pointed out would be the market’s biggest capex figure since 2014. And if anything, those forecasts seemed low in June, when the analysts at Oppenheimer raisedtheir capex figures for Verizon (by 2% to $18.2 billion) and AT&T (by 3% to $25 billion). 

Now, though, the capex situation in the US looks decidedly less rosy. Sprint, Verizon and AT&T have all reduced their overall capex numbers for 2018. The operators cite a variety of reasons, from timing issues to more efficient network technologies. But the ultimate result is the same: Where there was once excitement, now there’s a decided sense of pragmatism.

“Dare we say it: Capex intensity is declining,” wrote the analysts at Wall Street research firm Scotiabank in a recent note to investors. The analysts cited Verizon specifically, which last month said it now expects to spend a total of between $16.8 billion and $17 billion on its network during the course of 2018—a range that is down notably from the $17 billion to $17.8 billion the operator gave at the beginning of the year.

Why San Jose Kids Do Homework in Parking Lots

Mayor Sam Liccardo (D-San Jose)  |  Op-Ed  |  New York Times

More than 10.7 million low-income households in the United States lack access to quality internet service. In cities like San Jose (CA), local governments are using streetlight poles to facilitate equitable access to high-speed internet to dramatically improve educational outcomes for low-income students and expand economic opportunity for their families. Unfortunately, a recent mandate by the Federal Communications Commission might halt the progress made by these cities. Since 2017, the FCC has pushed an industry-friendly proposal to mandate that cities offer below-market, taxpayer-subsidized lease rates to telecommunications providers that want to use streetlight poles. The mandate overrides local authority to negotiate with these companies over lease terms like the small-cell devices’ location, size, appearance or any contribution to enable more equitable or affordable internet service. Many have condemned this as a corporate giveaway that comes at the expense of local taxpayers and low-income residents, while industry lobbyists assert that the high streetlight pole lease rates demanded by city governments interfere with their need for rapid communications infrastructure deployment. We can do better.

[Liccardo is the mayor of San Jose, California] 

FCC Commissioner Carr, San Jose Mayor Spar Over 5G

Cristiano Lima  |  Politico

The Federal Communications Commission's Brendan Carr is taking off the gloves in a fight with San Jose (CA) Mayor Sam Liccardo. “We must do better than Mayor Liccardo’s failed broadband policies,” Commissioner Carr wrote on Twitter  in response to a Liccardo op-ed. “Under his 3+ year leadership, San Jose approved zero small cells-ZERO-depriving residents of broadband options. It fell behind peer cities & the digital divide there only widened.” San Jose is among cities suing the FCC over Carr’s recent 5G wireless order, which would set limits on how long municipalities can take to review carriers’ infrastructure applications and how much they can charge. Mayor Liccardo, however, touts what he calls a “landmark” deal San Jose negotiated with carriers earlier this year to facilitate deployment of thousands of these 5G small cells. Carr’s ideas “represent a triumph of corporate self-interest over principle,” Liccardo wrote in his op-ed. On Twitter, the mayor fired back at Carr to say San Jose has “approved 86 cells already, w/4,000 more to come from last month’s agreements.” San Jose, added Mayor Liccardo, has “corrected your spokesperson’s falsehoods on this point before, & would have hoped you’d actually seek facts before parroting Big Telecom’s claims.”

Rural Kids Face an Internet 'Homework Gap.' The FCC Could Help

Chris Berdik  |  Wired

While several slices of spectrum can carry mobile internet, the most promising for rural school districts is one the Federal Communications Commission first reserved for educational television broadcasts in the 1960s. Over three decades, the government gave away more than 2,000 spectrum licenses to school districts and education nonprofits, primarily in urban areas. But the FCC effectively stopped issuing such licenses in 1995, because many license holders weren’t using their spectrum, and instead making money by leasing it to commercial telecommunication companies. Nobody made a big fuss about the licensing freeze until 2004, when the FCC expanded the allowable use of this frequency band to include broadband internet and renamed it Educational Broadband Service. Suddenly, this sleepy spectrum became extremely valuable. But the freeze on new licenses remained, leaving huge swaths of the country without any legal access to EBS frequencies, areas collectively known as EBS “whitespace.” In recent years, pressure has built on the FCC to open up licensing in EBS whitespace—both from big telecoms eager to fortify their nationwide wireless networks and from tech-savvy educators hoping to spread their schools’ internet into students’ homes. Finally, in May, the FCC suggested lifting the whitespace licensing moratorium, among several proposals to change EBS.

Ownership

ACA: DOJ Needs to Keep Leash on Comcast/NBCU

John Eggerton  |  Multichannel News

The American Cable Association called on the Justice Department to open an antitrust investigation into Comcast-NBCUniversal. It would be a way to keep Justice overseeing the company after the conditions DOJ imposed on the merger expired earlier in 2018. ACA is saying the government still needs a leash on the company.  Comcast-NBCU says the ACA's call is meritless and "constitutes an inappropriate attempt to gain leverage in the commercial marketplace." But President Donald Trump, who is no fan of NBC News or most big media companies with news operations that have reported critically on him, took note of the ACA letter in a tweet:

American Cable Association has big problems with Comcast. They say that Comcast routinely violates Antitrust Laws. “These guys are acting much worse, and have much more potential for damage to consumers, than anything AT&T-Time Warner would do.” Charlie Gasparino

Privacy

34 Civil Rights, Consumer, and Privacy Organizations Unite to Release Principles for Privacy Legislation

Shiva Stella  |  Press Release  |  Public Knowledge

34 civil rights, consumer, and privacy organizations join in releasing public interest principles for privacy legislation, because the public needs and deserves strong and comprehensive federal legislation to protect their privacy and afford meaningful redress.

Irresponsible data practices lead to a broad range of harms, including discrimination in employment, housing, healthcare, and advertising. They also lead to data breaches and loss of individuals’ control over personal information. Existing enforcement mechanisms fail to hold data processors accountable and provide little-to-no relief for privacy violations.

The privacy principles outline four concepts that any meaningful data protection legislation should incorporate at a minimum:

  • Privacy protections must be strong, meaningful, and comprehensive.
  • Data practices must protect civil rights, prevent unlawful discrimination, and advance equal opportunity.
  • Governments at all levels should play a role in protecting and enforcing privacy rights.
  • Legislation should provide redress for privacy violations.

Silicon Valley to NTIA: Federal Privacy Law Should Trump States

John Eggerton  |  Broadcasting&Cable

The Internet Association (IA) and Computer & Communications Industry Association (CCIA) submitted filings with the National Telecommunications & Information Administration (NTIA), which sought comment on a framework for protecting privacy. The organizations are in agreement that federal privacy legislation currently being contemplated by the White House and Congress should preempt state efforts to regulate privacy. They also advise the Trump Administration and Congress not to be in too much of a hurry to give the FTC rulemaking authority. In its comments, CCIA said that "where appropriate" state laws on data privacy, breach notification and security should be preempted by an overarching federal baseline privacy protection. IA said: "A national privacy framework should be consistent throughout all states, preempting state consumer privacy and data security laws."

Facebook Failed to Police How Its Partners Handled User Data

Nicholas Confessore, Michael LaForgia, Gabriel Dance  |  New York Times

Facebook failed to closely monitor device makers after granting them access to the personal data of hundreds of millions of people, according to a previously unreported disclosure to Congress. Facebook’s loose oversight of the partnerships was detected by the company’s government-approved privacy monitor in 2013. But it was never revealed to Facebook users, most of whom had not explicitly given the company permission to share their information. Details of those oversight practices were revealed in a letter Facebook sent in Oct 2018 to Senator Ron Wyden (D-OR). By early 2013 Facebook had entered into data-sharing agreements with seven device makers to provide what it called the “Facebook experience” — custom-built software, typically, that gave those manufacturers’ customers access to Facebook on their phones. Those partnerships, some of which date to at least 2010, fall under a consent decree with the Federal Trade Commission drafted in 2011 and intended to oversee the company’s privacy practices.

Government & Communications

President Trump calls April Ryan a 'loser,' threatens to revoke more press credentials

Jordan Fabian, Michael Grynbaum  |  Hill, The, New York Times

President Donald Trump suggested he could pull press credentials from other reporters who don't show him "respect." The comments come two days after the president suspended the press pass of CNN chief White House correspondent Jim Acosta after a contentious exchange during a news conference. "I think Jim Acosta is a very unprofessional man," President Trump said. Asked how long Acosta's credentials will be suspended, the president replied: "As far as I'm concerned, I haven't made that decision. But it could be others also." “When you’re in the White House, this is a very sacred place for me, a very special place,” President Trump said. “You have to treat the White House with respect. You have to treat the presidency with respect.” President Trump also went after April Ryan of American Urban Radio Networks as a "loser" who "doesn't know what the hell she is doing." 

President Trump also disputed claims that video shared by White House press secretary Sarah Huckabee Sanders of the Acosta incident was doctored. "Nobody manipulated, give me a break. That is dishonest reporting. All that was was a close up," he said.

Submit a Story

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.


© Benton Foundation 2018. Redistribution of this email publication — both internally and externally — is encouraged if it includes this message. For subscribe/unsubscribe info email: headlines AT benton DOT org


Kevin Taglang

Kevin Taglang
Executive Editor, Communications-related Headlines
Benton Foundation
727 Chicago Avenue
Evanston, IL 60202
847-328-3049
headlines AT benton DOT org

Share this edition:

Benton Foundation Benton Foundation Benton Foundation

Benton Foundation

The Benton Foundation All Rights Reserved © 2018