The FTC is seeking a court order making DirecTV identify all parties for whom it has paid the legal costs for the agency's 2015 complaint in U.S. District Court in San Francisco on the direct broadcast satellite company's advertising practices (see 1503110042). In a filing Wednesday in the case, the FTC said DirecTV hasn't produced "numerous categories of requested materials in discovery," making the agency go to third parties doing business with DirecTV for the information. But the FTC said Dish's lawyers from Sidley Austin also represent many of those third parties, some of whom also are responding slowly if at all. "Determining whether DirecTV is paying for these nonparties' legal fees and costs will help the FTC, and ultimately the Court, assess the extent of DirecTV's influence over these witnesses, weigh bias and ensure orderly and transparent discovery," the agency said. In the same case, DirecTV disputed the FTC claims, saying the problem is that the agency "issued sweeping and over broad requests, requiring the responding parties and the FTC to engage in weekly meet and confer session to discuss how these requests could be narrowed and what documents will be produced." The FTC has received more than 468,000 separate records and documents from DirecTV and Sidley Austin-represented third parties, and more are coming, the satellite company said, saying the court shouldn't issue the order the agency seeks. It also said the commission has no authority for its claim that the same attorneys can't represent both a party and a non-adverse third party. While federal law says fee arrangements aren't confidential communications, DirecTV said, California law does protect those as confidential.
House Democrats from the Congressional Progressive Caucus sent FCC Chairman Tom Wheeler a letter Thursday, as expected (see 1601280013), backing the FCC’s push to overhaul its Lifeline program. The letter emphasized the importance of broadband to the program’s future. “Rather than allowing providers to oversee the eligibility verification of consumers as the Lifeline program expands to include broadband, the FCC should streamline the process with preexisting databases for other federal assistance programs,” said the letter, signed by 81 House Democrats. “We encourage the Commission to implement the expansion as soon as possible, as we cannot be inactive and allow the digital divide to further deepen at the expense of the 53% of low-income households without broadband access.” Congressional Progressive Caucus Vice Chairman Mark Takano, D-Calif., is the first signature, followed by caucus co-Chairmen Raul Grijalva, D-Ariz., and Keith Ellison, D-Minn. Absent among signatories were Communications Subcommittee ranking member Anna Eshoo, D-Calif., and Commerce Committee ranking member Frank Pallone, D-N.J.
The NAB is concerned that the FCC's set-top box proposals could threaten broadcaster control over their content and copyright, said NAB President Gordon Smith in an interview on C-SPAN's Communicators scheduled for telecast Feb. 20. If the FCC proposals for set-top boxes become rules, tech companies such as Google could become “gatekeepers,” Smith said.
The Telecom Act ushered in Internet innovation and growth even though it didn’t fully anticipate market developments, said some who helped draft the legislation that became law 20 years ago. Congress didn’t get all the details right, but the 1996 act created a strong competitive framework that was flexible enough to undergird huge investment in communications networks and Internet applications, panelists said at a Tuesday discussion hosted by the Georgetown Center for Business and Public Policy.
The FCC should act to protect the privacy of Americans' cellular communications against the "secretive" use of StingRays by law enforcement agencies, wrote Jason Norman, senior managing editor of the Federal Communications Law Journal, in a new 179-page piece explaining the usage of such cell-site simulators, their impact on privacy and security and why they undermine the justice system. Increased use of StingRays has come under fire by privacy and civil liberties advocates and others because they scoop up cellphone information from all nearby bystanders, not just suspects being targeted by law enforcement agencies, creating potential privacy implications. Norman argued StingRays are potential signal jammers, which are prohibited by the FCC except in narrow circumstances and only for use by federal law enforcement agencies. He said it could be illegal for state and local police to use such devices, which might cause interference. Norman also wrote that the FCC has formed a task force to probe potential abuses by foreign intelligence services and private individuals, but not those by U.S. government agencies. But FCC Chairman Tom Wheeler has said Title III of the Communications Act gives the agency power to address threats posed by such devices and that the commission needs to work with industry to secure wireless networks and better protect privacy, wrote Norman. This means enhancing encryption standards and security features for all devices over wireless networks, he said. "An insecure communications network is the Achilles heel of a strong nation, and while unchecked mass surveillance by law enforcement is profoundly disturbing, the thought that anyone with moderate technical knowledge and a few hundred dollars in their pocket can eavesdrop on 99% of our communications is terrifying," he wrote. The FCC didn't comment.
The FCC would reduce rural telcos’ rate of return from 11.25 percent to 9.75 percent over six years under a USTelecom and NTCA proposal to revamp USF mechanisms for broadband coverage. The groups also proposed broadband buildout obligations requiring RLECs to reach up to 80 percent of unserved locations over five years and a screen for phasing out USF support in high-cost areas where unsubsidized competitors reach 85 percent of locations, said a filing posted Monday in docket 10-90. It summarized a meeting last week with senior FCC officials, including Chairman Tom Wheeler. NTCA, WTA and individual RLECs made separate filings citing concerns and offering proposals. Wheeler is said to be interested in circulating a draft order soon (see 1602040055).
IDT Telecom received somewhat more support than opposition to its bid for an FCC rulemaking aimed at expanding the Telecommunications Relay Service (TRS) Fund’s revenue base to include the intrastate revenue of industry contributors (see 1512210029). IDT’s petition got support from a coalition of consumer groups that advocate for the rights of the deaf and hard of hearing, and from some industry parties, including two video relay service (VRS) providers. But a VoIP industry group opposed the petition and an incumbent telco group said the FCC shouldn't make changes to the TRS Fund’s contribution at this time. The initial comments of parties were posted in docket 03-123 Thursday and Friday. The FCC currently assesses industry interstate and international telecom end-user revenue to pay for the TRS Fund.
Congressional scrutiny of retiring ICANN CEO Fadi Chehadé’s involvement with the controversial Chinese government-led World Internet Conference (WIC) heightens the need for ICANN to select and announce Chehadé’s successor, while the controversy's potential effect on U.S. government approval of the planned Internet Assigned Numbers Authority (IANA) transition is less clear, said ICANN stakeholders in interviews. GOP presidential contender Sen. Ted Cruz, R-Texas, and two other senators jointly sent a letter to Chehadé Thursday questioning Chehadé’s plan to become co-chairman of a high-level WIC advisory committee, and what compensation he will be receiving for that role, in a bid to determine whether his decision to take on a role at WIC while still ICANN CEO is a conflict of interest (see 1602040061).
Charter Communications still hopes to see federal approval of its $89.1 billion takeovers of Bright House Networks and Time Warner Cable by the end of March, CEO Tom Rutledge said on a conference call Thursday on FY 2015 financial results. "We're reasonably confident the FCC and DOJ [Department of Justice] are on track to stay within the [180-day] shot clock," Rutledge said. As of Thursday, it stood at 131 days.
The war of words over draft FCC proposed rules on untying set-top boxes from the multichannel video programming distributors that often provide the boxes to MVPD customers (see 1601270064) escalated Wednesday. After AT&T slammed Google over the Internet company's transition plan and by extension the FCC for considering it, the Justice Department emailed us a statement backing the commission's tack. That statement was the subject (see 1602030055) of a Communications Daily Bulletin. The FCC likewise defended its plan.