Daily Digest 10/22/2018 (Russians Interfering in Midterm Elections)

Benton Foundation
Table of Contents

Emergency Communications

FCC Chairman Pai eases up on criticisms to Hurricane Michael response  |  Read below  |  Samantha Gross  |  Tampa Bay Times

Elections

Justice Department Accuses Russians of Interfering in Midterm Elections  |  Read below  |  Adam Goldman  |  New York Times, Washington Post, Wall Street Journal
  • Is there interference in the 2018 US midterm elections?  |  Associated Press
How campaigns are using marketing, manipulation, and "psychographic targeting" to win elections—and weaken democracy  |  Read below  |  Sue Halpern  |  New Republic
Republicans Find a Facebook Workaround: Their Own Apps  |  New York Times
Republicans Hold Cash Edge Heading Into Final Stretch of the Midterms  |  New York Times
How to “Follow the Money” When It Comes to Political Campaigns  |  ProPublica

Communications and Democracy

Trump’s Attacks on the Press Are Illegal. We’re Suing.  |  Read below  |  Suzanne Nossel  |  Op-Ed  |  Politico
All Americans should recoil from the president’s praise for a violent assault on a reporter doing his job  |  White House Correspondents’ Association

Broadband

Rural Americans Struggle with Poor Broadband Access  |  Read below  |  Teresa Krug  |  Voice of America
Why Rural Communities of Color Are Left Behind: A Call for Intersectional Demographic Broadband Data  |  Read below  |  Alisa Valentin  |  Analysis  |  Public Knowledge
Sec Perdue Hopes to Have “Solid Plan” by Year-End for $600M USDA Rural Broadband Pilot  |  Read below  |  Joan Engebretson  |  telecompetitor
EPB, Chattanooga's municipal power utility, tops 100,000 fiber optic customers  |  Read below  |  Dave Flessner  |  Times Free Press
ITIF Backs FCC in Net Neutrality Court Brief  |  Information Technology and Innovation Foundation
Zazie Beetz Explains Net Neutrality  |  Vogue
Editorial: Massachusetts' vaunted fiber network limps toward sustainability  |  Berkshire Eagle
Comcast says it offers gigabit-speed broadband service to nearly every home in its service area  |  Forbes

Ownership/Competition

The Latest Round of FTC Competition and Consumer Protection Hearings  |  Read below  |  Robbie McBeath  |  Analysis  |  Benton Foundation
Should we break up the tech giants? Not if you ask the economists who take money from them  |  Read below  |  Matt Stoller, Austin Frerick  |  Op-Ed  |  Fast Company
AT&T to Court: DOJ Has No Legal Legs to Stand On  |  Read below  |  John Eggerton  |  Multichannel News

Wireless

5G is coming, but not everyone is happy about it  |  Read below  |  Kent German  |  C|Net
How 5G pits big carriers and government against small towns  |  C|Net
Verizon temporarily unlocks all Pixel 3 phones after complaints  |  Read below  |  Chris Welch  |  
Strategy Analytics: 5G Smartphone Costs Will Require Return to Subsidy Pricing  |  Read below  |  Phil Britt  |  telecompetitor
Verizon: ready to deploy 3.5 GHz CBRS services now, mainly for outdoor coverage  |  Fierce

Privacy

European Union pushes US over privacy pact  |  Read below  |  David McCabe, Shannon Vavra  |  Axios, Politico, Department of Commerce
Staff paper on injuries consumers may suffer from privacy and security incidents  |  Federal Trade Commission

Policymakers

The 2019 Congress could shatter diversity records  |  Read below  |  Alayna Treene  |  Axios
The White House is wooing tech workers to do tours of duty in government  |  Washington Post

Stories From Abroad

Three Internet Trolls Convicted of Systematic Defamation Against Journalist in Finland  |  New York Times
Saudis’ Image Makers: A Troll Army and a Twitter Insider  |  Read below  |  Katie Benner, Mark Mazzetti, Ben Hubbard, Mike Isaac  |  New York Times

Jamal Khashoggi

Why one man’s disappearance captured the outrage and media attention that war has not  |  Washington Post
The Tragedy of Jamal Khashoggi: His fate may seal that of the reckless leader he criticized  |  Politico
Conservatives mount a whisper campaign smearing Khashoggi in defense of President Trump  |  Washington Post

Company News

Facebook hires former-UK Deputy Prime Minister Nick Clegg as head of global affairs  |  Financial Times
Richard Parsons Steps Down as Interim Chairman of CBS Because of Illness  |  New York Times
Kara Swisher: Some think chief ethics officers could help technology companies navigate political and social questions  |  New York Times
Today's Top Stories

Emergency Communications

FCC Chairman Pai eases up on criticisms to Hurricane Michael response

Samantha Gross  |  Tampa Bay Times

Federal Communications Commission Chairman Ajit Pai praised Florida's first responders and telecommunications companies. He was in Tallahassee, meeting with state officials at the emergency operation center discussing the response to Hurricane Michael. Chairman Pai was happy to see telecom companies react to his earlier, critical statement and contribute resources to local relief efforts. "I was very happy to see that there has been some progress in response to the statement I put out earlier this week," he said. "I was very pleased to hear that some of the carriers are waving some of those bills. Others are waving charges."

Elections

Justice Department Accuses Russians of Interfering in Midterm Elections

Russians working for a close ally of President Vladimir Putin engaged in an elaborate campaign of “information warfare” to interfere with the midterm elections, federal prosecutors said in unsealing a criminal complaint against one of them. The woman, Elena Alekseevna Khusyaynova, of St. Petersburg, was involved in an effort “to spread distrust toward candidates for US political office and the US political system,” prosecutors said. Court documents provided a detailed look into Russian efforts to “sow division and discord” in the American political system, thanks in part to Khusyaynova, a fastidious manager and bookkeeper. Khusyaynova managed millions of dollars for a company owned by Yevgeny Prigozhin, a Russian oligarch sometimes called “Putin’s chef.” He was indicted in February 2018 on charges of interfering in the 2016 presidential election. Some of the money Khusyaynova managed was spent on advertising on social media in the United States, buying internet domain names and “promoting news postings on social networks.” The conspirators seized on divisions in American politics, prosecutors said, including immigration, guns, race relations, women and even the debate over the protests by National Football League players during the national anthem. According to the complaint, Russia’s trolls did not limit themselves to either a liberal or conservative position, and often wrote from both viewpoints on the same issue. They developed strategies for blending in to partisan American audiences.

How campaigns are using marketing, manipulation, and "psychographic targeting" to win elections—and weaken democracy

Sue Halpern  |  New Republic

Republican and Democratic data firms are hard at work on the next generation of digital tools—driven by the idea that political campaigns can identify and influence voters by gathering as much data about them as possible. “To be a technology president used to be a very cool thing,” said Zac Moffatt, who ran Mitt Romney’s 2012 digital campaign. “And now it’s a very dangerous thing.” The manipulation of personal data to advance a political cause undermines a fundamental aspect of American democracy: the idea of a free and fair election.

Communications and Democracy

Trump’s Attacks on the Press Are Illegal. We’re Suing.

Suzanne Nossel  |  Op-Ed  |  Politico

President Donald Trump's frequent threats and hostile acts directed toward journalists and the media are not only offensive and unbecoming of a democratic leader; they are also illegal. Although the president can launch verbal tirades against the press, he cannot use the powers of his office to suppress or punish speech he doesn’t like. When President Trump proposes government retribution against news outlets and reporters, his statements cross the line. Worse still, in several cases it appears that the bureaucracy he controls has acted on his demands, making other threats he issues to use his governmental powers more credible. Using the force of the presidency to punish or suppress legally protected speech strikes at the heart of the First Amendment, contravening the Constitution. Presidents are free to mock, needle, evade and even demean the press, but not to use the power of government to stifle it.

[Suzanne Nossel is CEO of PEN America]

Broadband

Rural Americans Struggle with Poor Broadband Access

Teresa Krug  |  Voice of America

Even in the country that invented the internet, access has remained painfully slow for many rural residents in places like the central state of Arkansas, far from the big cities of the East and West coasts. That may be about to change. The Federal Communications Commission recently auctioned off almost $1.5 billion in subsidies to get broadband providers to serve an additional 700,000 American homes over the next 10 years. Additional such auctions are planned. For rural residents in Arkansas — ranked as one of the worst connected states in the country — it cannot come too soon.

Why Rural Communities of Color Are Left Behind: A Call for Intersectional Demographic Broadband Data

Alisa Valentin  |  Analysis  |  Public Knowledge

Research already shows that existing disparities related to broadband access are not race-neutral. Logically, that means that the analysis of these disparities should also not be race-neutral. Demographic data on broadband deployment is a win-win and will help industry, policy makers, public interest groups, and civil rights organizations create policy solutions that address the digital divide among varied racial groups in rural communities. The notion that the lack of broadband access in rural communities is a racial justice issue is not a radical one and is supported by thorough research. If the Federal Communications Commission fails to recognize this, its data points will continue to leave people of color on the wrong side of the digital divide.

[Alisa Valentin is a Communications Justice Fellow at Public Knowledge]

Sec Perdue Hopes to Have “Solid Plan” by Year-End for $600M USDA Rural Broadband Pilot

Joan Engebretson  |  telecompetitor

Secretary Sonny Perdue didn’t have many new details to share about the upcoming $600 million US Department of Agriculture rural broadband pilot when he addressed stakeholders at a USTelecom event. But his comments suggested that could change soon. “I’ve challenged my people to have a solid plan in place by the end of the year,” said Sec Perdue. He also noted that “we are close to determining the rules but we’re not there just yet.” He noted that USDA received more than 250 comments from stakeholders in response to the agency’s request for input on the pilot program. The deadline for filing comments was September 10 and Sec Perdue said the agency is using those comments in developing rules for the program.

EPB, Chattanooga's municipal power utility, tops 100,000 fiber optic customers

Dave Flessner  |  Times Free Press

When EPB, Chattanooga's municipal power utility, launched its Internet, video, and phone services nearly a decade ago in conjunction with its efforts to build a smarter electric grid, the city-owned utility projected it should attract more than 30,000 customers of its telecom services within five years to cover its costs and break even. But the fiber-optic network exceeded those expectations in less than 18 months, and now EPB Fiber tops 100,000 paying subscribers, providing connections to more than 60 percent of all homes and businesses in its service territory. EPB is able to repay its initial telecom investment years ahead of its original forecast, allowing it to provide an extra $42 million a year back into its electric system.

Ownership/Competition

The Latest Round of FTC Competition and Consumer Protection Hearings

Robbie McBeath  |  Analysis  |  Benton Foundation

The Federal Trade Commission this week held another set of hearings on Competition and Consumer Protection in the 21st Century. The hearings and public comment process this Fall and Winter will provide opportunities for FTC staff and leadership to listen to experts and the public on key privacy and antitrust issues facing the modern economy. The hearings are intended to stimulate thoughtful internal and external evaluation of the FTC’s near- and long-term law enforcement and policy agenda. The end goal is to identify areas for enforcement and policy guidance, including improvements to the agency’s investigation and law enforcement processes, as uncover areas that warrant additional study. This week was hearing #3, a three-day event that examined 1) the potential for collusive, exclusionary, and predatory conduct in multi-sided, technology-based platform industries, 2) the approach to addressing antitrust issues regarding labor markets, and; 3) antitrust frameworks for evaluating acquisitions of nascent competitors or occurring in nascent markets, including in the technology and digital marketplace.

Should we break up the tech giants? Not if you ask the economists who take money from them

Matt Stoller, Austin Frerick  |  Op-Ed  |  Fast Company

Amid growing concern over the power of such behemoths as Amazon, Google, Facebook, and other tech giants, in recent months there’s been a bipartisan push for better enforcement of antitrust rules–with even President Trump saying in August that their size and influence could constitute a “very antitrust situation.” The Federal Trade Commission has launched its most wide-ranging study of corporate concentration in America in more than 20 years with a series of hearings being held around the country. Chairman Joseph Simons, a practical enforcement-minded leader, launched the hearings by expressing concern over the growing problem of monopoly, which is now found in nearly every sector of the economy. “I approach all of these issues with a very open mind,” said Simons, “very much willing to be influenced by what I see and hear.” But there’s a problem. The FTC organized these hearings so that Simons and the public would be hearing from many economists who have taken money, directly or indirectly, from giant corporations.

[Matt Stoller and Austin Frerick are fellows at the Open Markets Institute]

AT&T to Court: DOJ Has No Legal Legs to Stand On

John Eggerton  |  Multichannel News

In a brief filed in court, AT&T argues that the Department of Justice used bad numbers to come to the wrong conclusion about AT&T-Time Warner merger and a lower court was right to reject that conclusion and allow the deal. AT&T pointed out in its brief to the US Court of Appeals for the DC Circuit that, "in the crucible of litigation, DOJ's claims were exposed to be both narrow and fragile," and ultimately fell apart. "Relying primarily on a theoretical model that purports to simulate the bargaining dynamics between programmers and pay-TV distributors, DOJ sought to prove that the merger would likely cause two things to happen: (1) AT&T would charge its rival pay-TV distributors higher wholesale prices for certain Time Warner networks, and (2) rival distributors would in turn increase their retail prices by a collective amount greater than the price savings that millions of AT&T customers would enjoy as a result of the merger," AT&T told the court.

Wireless

5G is coming, but not everyone is happy about it

Kent German  |  C|Net

For 5G, rather than relying on the huge cellular towers that already loom over industrial parks and shopping centers, carriers are counting on "small cell" antennas placed only hundreds of feet apart. About the size of a backpack, a small cell is typically installed atop an existing utility pole or streetlight, sometimes with other equipment closer to the ground. The small antennas are less powerful than cell towers, covering an area of up to 1,000 feet rather than a few miles. So carriers need more of them to blanket a neighborhood. Many people, eager for better wireless reception, aren't complaining. And as more people ditch landlines, cities increasingly depend on reliable mobile networks to provide basic services, including emergency response. But for some homeowners, the idea of antennas sprouting like weeds outside the front door is sparking controversy about property values, neighborhood clutter, and the safety of wireless signals. They are fighting city hall, leaving local officials to address their concerns while fending off a federal government eager to press ahead with 5G no matter what residents say.

Verizon temporarily unlocks all Pixel 3 phones after complaints

Chris Welch  |  

Verizon will allow all of its Pixel 3 and Pixel 3 XL phones to immediately be used on different carriers. Previously, buyers noticed that the Pixel 3 was locked to Verizon’s network until it was activated. Once activated with a Verizon SIM, the device would be unlocked overnight for use with other carriers. But now Verizon is lifting the lock fully and immediately — but maybe only temporarily. “At launch, there was an update related to an automatic overnight unlock on Pixel 3s, which also showed up on phones sold in Best Buy stores,” a spokesperson said. “We have temporarily removed it from Pixel 3 and are assessing where it will be implemented in the future.”

Strategy Analytics: 5G Smartphone Costs Will Require Return to Subsidy Pricing

Phil Britt  |  telecompetitor

The power of 5G won’t be cheap, Strategy Analytics points out in a new report about 5G smartphone costs. The phones are expected to sell for more than $1,000 ($750 wholesale) when they are introduced -- and 5G device prices will decline at a much slower pace compared to 3G and 4G handsets. At those prices, subsidies will need to return for acceptance of these devices by the mass market, the firm adds.

Privacy

European Union pushes US over privacy pact

David McCabe, Shannon Vavra  |  Axios, Politico, Department of Commerce

Officials from the United States have entered discussions with their European counterparts in Brussels over the status of the Privacy Shield agreement, which allows Europeans to file complaints about how US companies are using their data. The officials are expected to tackle "developments concerning the collection of personal data by US authorities for purposes of law enforcement or national security." Don’t expect any major surprises, as European Union leaders are expected to wait until at least November to issue recommendations on whether to move forward with the pact. Officials from both sides of the Atlantic have publicly expressed support for the agreement in recent days, with EU Justice Commissioner Vera Jourova calling it a “commercial success” on Twitter and Commerce Secretary Wilbur Ross calling for the US and EU to “preserve the framework” in an op-ed.

Policymakers

The 2019 Congress could shatter diversity records

Alayna Treene  |  Axios

If Democrats take back the House in November 2019 could have more minority representatives in Congress than it's had in its 230-year history. And Congress would finally start to look more like the country it represents. But while voters across the country are increasingly choosing to elect candidates who look like them, the media covering Congress are still lagging far behind with regard to diversity: 83% of the workforce at US daily print and online media outlets is white, and 87% of leadership positions are occupied by white reporters and editors. Men represent 61% of the workforce at those news outlets, and a similar share of the industry’s leadership positions

Stories From Abroad

Saudis’ Image Makers: A Troll Army and a Twitter Insider

Katie Benner, Mark Mazzetti, Ben Hubbard, Mike Isaac  |  New York Times

The murder of Jamal Khashoggi, a columnist for The Washington Post, has focused the world’s attention on the kingdom’s intimidation campaign against influential voices raising questions about the darker side of the crown prince. The young royal has tightened his grip on the kingdom while presenting himself in Western capitals as the man to reform the hidebound Saudi state. Saudi operatives have mobilized to harass critics on Twitter, a wildly popular platform for news in the kingdom since the Arab Spring uprisings began in 2010. Saud al-Qahtani, a top adviser to Crown Prince Mohammed who was fired on Saturday in the fallout from Mr. Khashoggi’s killing, was the strategist behind the operation, according to United States and Saudi officials, as well as activist organizations. Many Saudis had hoped that Twitter would democratize discourse by giving everyday citizens a voice, but Saudi Arabia has instead become an illustration of how authoritarian governments can manipulate social media to silence or drown out critical voices while spreading their own version of reality.

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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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