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BENTON’S COMMUNICATIONS-RELATED HEADLINES for THURSDAY, JUNE 30, 2016

Today’s Events:



WIRELESS/SPECTRUM

   Spectrum Auction: Broadcaster Exit Price Is $86,422,558,704

   Auction Pledge to Broadcasters May Be Too High for Wireless

   Wi-Fi Alliance promises faster Wi-Fi in new products in 2016

INTERNET/BROADBAND

   Akamai’s State of the Internet Report

   www iconAT&T: FCC Appears Driving to Pre-Ordained BDS Destination [links to Broadcasting&Cable]

   www iconNCTA: FCC’s Business Data Service Regulations Must Focus on Market Power [links to Broadcasting&Cable]

   www iconAT&T: Incompas-Verizon BDS Advocacy Is No Compromise [links to Multichannel News]

   www iconPublic Knowledge Files FCC Comments Supporting Competition in Business Data Services Market [links to Public Knowledge]

   www iconChairman Wheeler’s Response to Rep. Allen Regarding Connect America Phase II Funding [links to Federal Communications Commission]

   www iconChairman Wheeler’s Response to Reps. Russell, Mullin, Cole, Bridenstine and Lucas Regarding the Lifeline Broadband Provider Designation Process [links to Federal Communications Commission]

   Google is testing an Internet speed tool built right into search results [links to Benton summary]

OWNERSHIP

   Sen Warren targets Amazon, Apple, Google in anti-monopoly speech

   Commissioner Pai Statement on Media Ownership Proposal – press release

   www iconCenturyLink Acquires Active Broadband Network Assets [links to telecompetitor]

   www iconAT&T Wraps Quickplay Deal [links to Multichannel News]

GOVERNMENT & COMMUNICATIONS

   New ACLU lawsuit takes on the Internet’s most hated hacking law

   Chairman Wheeler’s Response to Rep. Roby Regarding the Second E-Rate Modernization Order – press release [links to Benton summary]

   CBO Scores the Federal Information Systems Safeguards Act – research [links to Benton summary]

   Five questions Congress should ask the FCC commissioners on July 12 – AEI op-ed [links to Benton summary]

   www iconStates Band Together for Large-Scale Cloud Purchasing Agreement [links to Government Technology]

CONTENT

   Facebook to Change News Feed to Focus on Friends and Family

   How To Break Open The Web – Fast Company op-ed [links to Benton summary]

   www iconVerizon: Online Viewers Expect TV-Quality Video[links to Broadcasting&Cable]

   www icon2011: A technology inflection point, five years later[links to Brookings]

ACCESSIBILITY

   Protecting privacy and promoting inclusion with the ‘Internet of Things’ – The Hill op-ed

EMERGENCY COMMUNICATIONS

   www iconCommLawBlog: EAS Test Reporting System Now Open for Business [links to CommLawBlog]

TELEVISION

   www iconChairman Wheeler’s Response to Rep McKinley Regarding the Impact of Retransmission Consent NPRM on Small and Medium-Sized Broadband and Video Voice Providers [links to Federal Communications Commission]

   www iconSNL Kagan: Retransmission Fees Rising 20% to $7.7 Billion in 2016 [links to Broadcasting&Cable]

SECURITY/PRIVACY

   What media companies don’t want you to know about ad blocker – CJR op-ed [links to Benton summary]

TELECOM

   www iconFCC Announces Implementation of the Budget Control Mechanism for Rate-of-Return Carriers [links to Federal Communications Commission]

AGENDA

   www iconFCC Announces Technological Advisory Council Meeting On September 20, 2016 [links to Federal Communications Commission]

ELECTIONS & MEDIA

   www iconFox News on Pace for Most-Watched Year in Network History [links to Wrap, The]

   www iconHow social media has changed the landscape for editorial cartooning [links to Columbia Journalism Review]

ADVERTISING

   www iconAmazon will start subsidizing Android phones with ‘special offer’ ads on the lock screens [links to Verge, The]

JOURNALISM

   It’s time for a new set of news values. Here’s where we should start. – Poynter op-ed [links to Benton summary]

LABOR

   www iconTrump: TPP trade deal ‘pushed by special interests who want to rape our country’ [links to Washington Post]

DIVERSITY

   www iconFilm Academy Broadens Voting Pool After Oscars Criticism [links to New York Times]

STORIES FROM ABROAD

   www iconFacebook Wins Belgian Court Case Over Storing Non-User Data [links to Bloomberg]

   www iconThis Map Shows Where and Why Local Canadian Newspapers Are Shutting Down [links to Vice]

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WIRELESS/SPECTRUM



SPECTRUM AUCTION BROADCASTER EXIT PRICE

[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]

If wireless companies and other forward auction bidders cooperate, the government will pay TV broadcasters $86,422,558,704 to reclaim their spectrum in key markets. The Federal Communications Commission will have to collect at least that much in the forward auction to cover what it will have to pay broadcasters at the 126 MHz clearing target it set for the first stage of the reverse portion of the spectrum auction, which closed June 29 after 52 rounds. The FCC announced that much-anticipated and speculated about "clearing cost" figure on the auction website. “Today, bidding concluded in the reverse auction, establishing the cost for clearing 126 MHz in the TV band for wireless use," said Gary Epstein, chair of the FCC’s Incentive Auction Task Force. "Strong participation from broadcast stations made this initial clearing target possible. Now the action shifts to the forward auction, which will give wireless bidders the opportunity to compete for this beachfront spectrum to meet America’s growing mobile data needs.” The FCC was able to clear that much spectrum thanks to the robust participation by TV broadcasters looking for a big payday. Actually, the FCC will need to make a couple billion dollars more than that figure in the forward auction to cover the $200 million-plus in projected auction expenses and another $1.75 billion to cover the cost of repacking broadcasters in their tighter spectrum quarters after both parts of the two-sided auction are completed.

benton.org/headlines/spectrum-auction-broadcaster-exit-price-86422558704 | Broadcasting&Cable | Fierce

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AUCTION PLEDGE TO BROADCASTERS MAY BE TOO HIGH FOR WIRELESS

[SOURCE: Bloomberg, AUTHOR: Todd Shields, Scott Moritz]

US officials announced a price tag of $86.4 billion for TV station airwaves being sold in a government auction, an amount that wireless providers may balk at — sending the process into a second round. The figure from the Federal Communications Commission amounts to a pledge to pay TV station owners such as Comcast’s NBCUniversal, 21st Century Fox and CBS for giving up airwaves that are to be sold to wireless providers. Now the months-long auction turns to the next phase when wireless providers such as AT&T and Verizon will bid to buy the frequencies and convert them to carrying smartphone signals instead of television shows. The figure exceeds many pre-auction estimates of bidding by wireless companies. If their spending falls short of the pledged amount, the FCC will extend the auction and try again, this time paying broadcasters less. In response to the clearing cost for broadcasters to exit spectrum—at least in the first round of the FCC’s auction and at the highest spectrum clearing target of 126 MHz—Wells Fargo senior analyst Marci Ryvicker said, "This is way, way, way above what we had been expecting ($35B) and also way, way, way above what consultants had been saying ($50-60B). Our quick take is that the broadcasters showed discipline – investors were fearful that this would be a race to the bottom and it clearly was not; rather this was an orderly auction that came out with prices much higher than expected. That said, this creates a challenge for the forward auction as we have struggled to see more than $30B being spent by the wireless companies. This clearly means, to us, that the entire incentive auction will run through multiple stages and could go into 2017 unless the FCC will pursue a quick forward process; i.e. allowing multiple (and when I say multiple, I mean multiple) rounds per day."

benton.org/headlines/auction-pledge-broadcasters-may-be-too-high-wireless | Bloomberg | B&C

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WI-FI ALLIANCE PROMISES FASTER WI-FI IN NEW PRODUCTS IN 2016

[SOURCE: The Verge, AUTHOR: Jacob Kastrenakes]

The tech world is ready for better Wi-Fi, and in 2016 we may start to get it. The Wi-Fi Alliance is announcing an update to its certification program for modern Wi-Fi devices, which will require all new products to support faster speeds and for routers to do a better job of handling multiple devices at the same time. Going forward, routers and devices that want to comply with its latest certification program will have to support three key new features: wider channel bandwidth, an additional spacial stream, and perhaps most importantly, MU-MIMO. That latest one has a horribly convoluted name, but it essentially just means that a router can send data to multiple devices at the same time. That’s right: right now, routers are generally sending data to one device at a time. They switch back and forth between our devices fast enough that we don’t necessarily notice — only sending a bit to each at one time — but MU-MIMO should deliver a more consistent result for everyone. Newly certified Wi-Fi routers should be capable of sending data to four devices at a time, potentially delivering a faster result when combined with other Wi-Fi improvements. "A given device that supports all these features will be capable of delivering three times the speed of [802.11ac] devices even a year ago," says Kevin Robinson, the Wi-Fi Alliance’s marketing VP.

benton.org/headlines/wi-fi-alliance-promises-faster-wi-fi-new-products-2016 | Verge, The | Wi-Fi Alliance

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INTERNET/BROADBAND



AKAMAI’S STATE OF THE INTERNET REPORT

[SOURCE: Akamai, AUTHOR: ]

The average Internet speed in the United States has made significant gains over the past year but still trails behind a number of smaller, heavily urban countries. According to a new report out by Akamai, the average Internet download speed in the United States is 15.3 Megabits per second (Mbps). To put that in context, Netflix recommends 5 Mbps to stream HD movies and the government has set a goal of 25 Mbps for high-speed Internet service. Those speeds, measured in the first quarter of 2016, are well above the global average. But they don’t put the United States in the top 10 fastest countries, led by South Korea, Norway, Sweden and Hong Kong. Most US states saw double-digit increases in speed. Delaware, Rhode Island, Massachusetts, Utah, New Jersey, Maryland, New York, Virginia and Washington had the highest US Internet speeds. The city of Washington (DC) had average download speeds of 24 Mbps, the fastest when compared against the 50 states. Mobile Internet speeds used on smartphones are much slower around the world. The average mobile download speed in the United States is 5.1 Mbps. That is slower than most countries in Europe, which is led by the United Kingdom with an average mobile speeds of 27.9 Mbps. The report also looked at the frequency of cyberattacks in the first quarter of 2016. The retail industry was by far the most frequent target of attacks to their web applications. Distributed Denial of Service attacks were most frequently directed at the gaming industry.

benton.org/headlines/akamais-state-internet-report |Akamai | The Verge | The Hill

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OWNERSHIP



SEN WARREN TARGETS AMAZON, APPLE, GOOGLE IN ANTI-MONOPOLY SPEECH

[SOURCE: The Hill, AUTHOR: Mario Trujillo]

Sen Elizabeth Warren (D-MA)) laid into a handful of major US technology companies, saying they are examples of concentrated corporate power that can thwart competition. "Google, Apple and Amazon provide platforms that lots of companies depend on for survival," she said during a speech. "But Google, Apple and Amazon also in many cases compete with those small companies so that platform can become a tool to snuff out competition." Sen Warren said the European Union’s citizens "may soon enjoy better protections than US customers" after the EU decided to push forward with anti-trust charges against Google’s search business, while the United States dropped its probe a few years back. She also highlighted the Federal Trade Commission’s investigation into whether Apple has improperly harmed rival music streaming companies in its app store. And she brought up allegations by authors that Amazon is using its dominant book-selling position to steer consumers away from rival publishers. And though regulators recently blocked Comcast’s proposed merger with Time Warner Cable, Sen Warren called out the nation’s largest Internet service provider, saying Comcast has been buying out its rivals over the years to the detriment of consumers. "While big telecom giants have been consuming each other, consumers have just been left out in the cold facing little to no choice in service providers and paying through the nose for cable and internet services," she said. Sen Warren conceded that major tech companies have changed the world and "deserve" their large profits and success. But she said they shouldn’t be able to thwart their rivals. "The opportunity to compete must remain open for new entrants and smaller competitors who want their own chance to change the world," she said.

benton.org/headlines/sen-warren-targets-amazon-apple-google-anti-monopoly-speech | Hill, The | Revere Digital

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PAI STATEMENT ON MEDIA OWNERSHIP PROPOSAL

[SOURCE: Federal Communications Commission, AUTHOR: FCC Commissioner Ajit Pai]

The Federal Communications Commission’s rules should reflect the media marketplace of today. Unfortunately, FCC Chairman Tom Wheeler’s media ownership proposal reflects the world that existed in the 1970s. In May, the FCC had no problem approving not one, but two multibillion dollar cable mergers. In 2015, it signed off on AT&T’s acquisition of DirecTV. Yet, it now gets the vapors at the prospect of a newspaper in Scranton (PA) owning a single radio station. Whatever the motivation for the Chairman’s proposal, it has nothing to do with the evidence in the record, principled decision-making, or the law. Indeed, given current trends, it is likely that the Commission’s newspaper broadcast cross-ownership restrictions will outlive the print newspaper industry itself.

benton.org/headlines/commissioner-pai-statement-media-ownership-proposal | Federal Communications Commission | B&C

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GOVERNMENT & COMMUNICATIONS



ACLU LAWSUIT TAKES ON INTERNET’S MOST HATED HACKING LAW

[SOURCE: The Verge, AUTHOR: Russell Brandom]

For decades, the Computer Fraud and Abuse Act has been one of America’s most dangerous laws for anyone doing "unauthorized" things with a computer. Used to prosecute Aaron Swartz,