Daily Digest 7/6/2018 (Ed Schultz)

Benton Foundation

Internet/Broadband

Net neutrality makes comeback in California; lawmakers agree to strict rules

A California network neutrality bill that could impose the toughest rules in the country is being resurrected. The bill was approved in its strongest form by the CA Senate, but it was then gutted by the State Assembly's Communications Committee, which approved the bill only after eliminating provisions opposed by AT&T and cable lobbyists. Bill author CA State Sen Scott Wiener (D-San Francisco) has been negotiating with Communications Committee Chairman Miguel Santiago (D-Los Angeles) and other lawmakers since then, and he announced the results July 5. State Sen Wiener said the agreement with Santiago and other lawwmakers resulted in "legislation implementing the strongest net neutrality protections in the nation."

A fact sheet distributed by state Sen Wiener's office said the following: "Under this agreement, SB 822 will contain strong net neutrality protections and prohibit blocking websites, speeding up or slowing down websites or whole classes of applications such as video, and charging websites for access to an ISP's subscribers or for fast lanes to those subscribers. ISPs will also be prohibited from circumventing these protections at the point where data enters their networks and from charging access fees to reach ISP customers. SB 822 will also ban ISPs from violating net neutrality by not counting the content and websites they own against subscribers' data caps. This kind of abusive and anti-competitive 'zero rating,' which leads to lower data caps for everyone, would be prohibited, while 'zero-rating' plans that don't harm consumers are not banned." A separate bill that was also included in the negotiations "will be amended to focus on requiring ISPs that enter into state contracts adhere to net neutrality principles," the fact sheet said. "This provision ensures that public entities only expend taxpayer funds on contracts with ISPs that comply with California’s comprehensive net neutrality protections."

App Association: NTIA More Likely Than FCC to Produce Unbiased Broadband Report

ACT: The App Association, which represents more than 5,000 app developers and device makers, said the Commerce Department's National Telecommunications & Information Administration (NTIA) should be the one collecting and compiling data on broadband availability, not the Federal Communications Commission. "[T]he technology administration [NTIA] is more at home working across government agencies to put together an unbiased report," said ACT senior policy director Graham Dufault. NTIA was in charge of populating a broadband availability map as part of broadband stimulus funding allocated during the Obama Administration, but that funding ran out in 2015 and the FCC took over the job. House Communications Subcommittee Chairman Marsha Blackburn (R-TN) has introduced legislation to return oversight of that data collection and mapping to NTIA.

Privacy

Suspected criminals get privacy rights—what about the rest of us?

Less than a month after the European Union instituted rules to protect the privacy of its citizens, the United States Supreme Court took an important step to protect Americans against unwarranted government intrusion in criminal investigations. Now it is time for another branch of government—the Congress—to act to protect our privacy the rest of the time. June’s decision in Carpenter v. U.S. (16 U.S. 402) focused on the government’s access to private information. Justice Samuel Alito, in dissent, expanded the matter from privacy in criminal cases to talk about the privacy for the rest of us. “Some of the greatest threats to individual privacy,” Justice Alito warned, “may come from powerful private companies that collect and sometimes misuse vast quantities of data about the lives of ordinary Americans.” The failure of Congress to create privacy rules doesn’t mean there are no rules—just that the rules have been created by those who profit from the sale of personal information rather than the representatives of the Americans whose privacy is being sold. The Supreme Court has stepped up to protect the privacy rights of the accused. It is time the people’s representatives step up to protect the rights of the rest of us.

[Tom Wheeler is the former Chairman of the Federal Communications Commission]

Agenda

FCC Agenda for July 2018 Open Meeting

[Press release] The Federal Communications Commission will hold an Open Meeting on the subject listed below on Thursday, July 12, 2018: 
Expanding Flexible Use of the 3.7 to 4.2 GHz Band – The Commission will consider an Order and Notice of Proposed Rulemaking that would continue the Commission’s efforts to make mid-band spectrum in the 3.7-4.2 GHz band available for expanded flexible use, primarily by seeking comment on mechanisms for clearing for mobile use and whether to allow point-to-multipoint use on a shared basis in portions of the band. To inform the Commission’s decision-making on the future of the band, it would also collect information from FSS earth stations and space stations to provide a clear understanding of the operations of current users. (GN Docket Nos. 18-122, 17-183; RM Nos. 11778, 11791)
Cellular Reform Third Report and Order – The Commission will consider a Report and Order eliminating unnecessary rules that apply to cellular service and other licensees. (WT Docket Nos. 12-40, 10-112, 16-138; RM Nos. 11510, 11660)
Children’s Television Programming Rules – The Commission will consider a Notice of Proposed Rulemaking seeking comment on proposed revisions to the children’s television programming rules to provide broadcasters greater flexibility in meeting their children’s programming obligations. (MB Docket No. 18-202)
Emergency Alert System and Wireless Emergency Alerts – The Commission will consider a Report and Order and Further Notice of Proposed Rulemaking to improve emergency alerting, including facilitating more effective EAS tests and preventing false alerts. (PS Docket Nos. 15-91, 15-94)
Nationwide Number Portability – The Commission will consider a Report and Order that forbears from legacy requirements and amends rules to facilitate the move toward complete nationwide number portability to promote competition between all service providers and increase network routing efficiencies. (WC Docket Nos. 17-244, 13-97)
Formal Complaint Rules Consolidation Order – The Commission will consider a Report and Order that consolidates and streamlines the rules governing formal complaint proceedings delegated to the Enforcement Bureau. (EB Docket No. 17-245)

A Solid Process and Proposal to Update Kid Vid

[FCC Commissioner Michael O'Rielly Op-Ed] Congress passed the 1990 Children’s Television Act to tie broadcast-license renewals, the main asset of a local station, with a fairly general obligation to air educational and informational programming for children. Over the years, the Federal Communications Commission has imposed multiple rounds of added burdens on broadcasters under the premise of implementing the law. Given the changed circumstances in the market and need for additional broadcaster flexibility, the FCC will vote [July 12] to initiate a rulemaking to consider modifying our rules on children’s programming, better known as Kid Vid. The fact of the matter is that data already available to the Commission indicate that broadcasters are heavily burdened by our rules, while most American households and children receive questionable benefits from them. American families want high-quality children’s television programming. Unfortunately, due to outdated rules, broadcasters are hamstrung from meeting market demand. It appears that there is unanimous agreement that our Kid Vid rules should be modernized and that we should carefully consider any data presented to help understand the impact of any proposed changes. That is what I intend to do.

Elections

The GOP's midterm playbook: Bash tech

Republican leaders and lawmakers are setting their sights on a new target as they head into a difficult midterm election: an increasingly-powerful tech industry they view as biased against conservatives. Republicans, including House Majority Leader Kevin McCarthy (R-CA), RNC Chairwoman Ronna McDaniel and Trump 2020 Campaign Manager Brad Parscale are making more noise about a host of Silicon Valley slights against conservatives, an issue that seems to be succeeding at firing up the GOP base. “Our supporters out there, by and large, believe that that’s true that a lot of these tech companies have an agenda,” said Senate Commerce Committee Chairman John Thune (R-SD). “I think it’s a real issue, but I also think it probably has some political value.”

The grievances have sent tech executives scrambling to defend themselves and prove they don’t harbor anti-conservative prejudice. If recent polling is any indication, tech-bashing may very well resonate with GOP voters, which Republican leaders hope will help them stave off the predicted “blue wave” of Democratic electoral victories. A majority of Republicans hold negative views of Silicon Valley. Eighty-five percent say they think social media sites are likely to censor their views, 64 percent say tech companies are likely to favor the views of liberals over their own, and 44 percent support increased regulation of the industry.

Telecom

Huawei: FCC proposal would hurt poor, rural communities

Chinese telecommunications giant Huawei is fighting back against some of the negative claims that US government officials have been making about the company in recent months. In a filing with the Federal Communications Commission, Huawei focused on recent moves by the agency to restrict rural carriers from purchasing telecommunications equipment made by Huawei and other Chinese companies. Huawei, with the help of telecommunications economist Allan Shampine, argued that by imposing new rules, the agency could hurt poor, rural communities. “These high costs, which would particularly harm Americans in remote and low-income areas, cannot be justified by the supposed national security benefits of the proposed rule, because these are speculative,” Huawei wrote.

Communications & Democracy

President Trump returns to attacks on media: 'These are really bad people'

President Donald Trump attacked the media once again on July 6, calling them "downright dishonest" and "really bad people" during a campaign-style rally in Montana. "I see the way they write. They're so damn dishonest," President Trump said. "And I don't mean all of them, because some of the finest people I know are journalists really. Hard to believe when I say that. I hate to say it, but I have to say it. But 75 percent of those people are downright dishonest. Downright dishonest. They're fake. They're fake." "They make the sources up. They don't exist in many cases," he continued. "These are really bad people."

Policymakers

Former Fox News executive Bill Shine joins Trump White House as deputy chief of staff for communications

Former Fox News Channel executive Bill Shine is joining the White House as assistant to the president and deputy chief of staff for communications, the White House announced. The long-anticipated move follows weeks of speculation that the former Fox News Channel and Fox Business Network co-president was a front-runner for the job, which has remained vacant since former communications director Hope Hicks announced her resignation in February. Shine, who started his two-decade-long career at Fox News as a producer for the show “Hannity & Colmes,” was ousted from his role as co-president in 2017 after lawsuits suggested he enabled alleged sexual harassment by the network’s late chairman and chief executive, Roger Ailes.

Sen McConnell Delays Starks FCC Confirmation

Geoffrey Starks, who sailed through a Senate Commerce Committee confirmation vote with unanimous backing, had seemed poised June 28 to assume a vacant Federal Communications Commission seat in a Senate vote by unanimous consent, paired with current-FCC Commissioner Brendan Carr’s nomination for a second term. But despite optimism from Commerce Committee Chairman John Thune (R-SD), the nominations didn't go through. The apparent reason: Senate Majority Leader Mitch McConnell (R-KY) who is apparently looking to move the FCC nominees in a broader package of nominations. Senate Democrats cleared the FCC nominees before the recess. McConnell spokesman Don Stewart disputed that the majority leader caused any stall and said Democrats weren’t ready to move before the recess. How could both be true? A different Senate staffer says that Democrats were advancing only the pair of Starks and Carr while McConnell was unsuccessfully seeking to advance a broader package of nominees (including Starks and Carr) for consideration. One source mentioned judicial nominees being of possible interest for Majority Leader McConnell and said the goal seems to be moving the broader package in the next month.

President Trump Nominates William Bryan to be the Under Secretary for Science and Technology at DHS

[Press release] President Donald Trump announced his intent to nominate William Bryan of Virginia to be the Under Secretary for Science and Technology at the Department of Homeland Security. Bryan currently serves as Senior Official Performing the Duties of the Under Secretary for Science and Technology at the Department of Homeland Security (DHS).  As the science and technology advisor to the DHS Secretary, he leads the research, development, innovation, and testing activities in support of DHS operational components and first responders across the Nation.  Previously, he was the President of ValueBridge International’s Energy Group and held leadership roles in the Departments of Energy Defense. Bryan is a United States Army veteran.  He graduated summa cum laude from Colorado Technical University and earned his MS from the Joint Military Intelligence College.

Scott Pruitt steps down as EPA head after ethics, management scandals (Washington Post)

Stories From Abroad

YouTube and Facebook escape billions in copyright payouts after European Union vote

Google, YouTube and Facebook could escape having to make billions in payouts to press publishers, record labels and artists after European Union lawmakers voted to reject proposed changes to copyright rules that aimed to make the tech companies share more of their revenues. The proposed new rules, which have been going through the European parliament for almost two years, have sparked an increasingly bitter battle between the internet giants and owners and creators of content, with both sides ferociously lobbying their cause.  Press publishers, record labels and artists, including Paul McCartney, believe the new rules will “right a wrong” and ensure the Silicon Valley giants are made to pay what they feel would be a fairer amount – to close a so-called “value gap” – for exploiting their content to build their own businesses. More than 1.3 billion users of Google-owned YouTube regularly watch music videos, making it the biggest music service in the world. However, artists receive only 67 cents per user annually in royalties. Campaigners against the proposals, including high-profile names such as the Wikipedia founder, Jimmy Wales, the world wide web inventor, Tim Berners-Lee, the net neutrality expert Tim Wu and the internet pioneer Vint Cerf, claim they would start to transform an “open platform for sharing and innovation into a tool for the automated surveillance and control of its users”.

Germany's top telecommunications regulator has US tech groups in its sights

Germany’s top telecommunications regulator has set its sights on US technology groups such as Google and Facebook, insisting that providers of messaging and email services should be regulated just like ordinary telecommunications companies. “What we are seeing is that the line between traditional telecommunications services and web-based services like [Google’s] Gmail and [Facebook’s] WhatsApp has become very blurred. Users often cannot see any difference at all,” said Jochen Homann, the president of Germany’s Bundesnetzagentur.  “It cannot be right that a company providing traditional telecommunications services has to meet certain regulatory requirements, like those concerning data protection, while a company providing comparable services over the web does not,” he added. The Bundesnetzagentur, or Federal Network Agency, has been locked in a legal battle with Google since 2014, after it ordered the US internet giant to register its email service as a telecommunications operator. That status triggers a series of additional regulatory requirements, in areas such as data protection and security, including the obligation to provide information and access to police and security services. The case is currently before the European Court of Justice. Homann made clear that he regards the legal dispute with Google as a test case, and that victory at the European tribunal would be followed by a broader crackdown.


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.

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