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City Loses Case for Streaming Revenues, 1/3 Get News from Facebook, Open Broadband Project

Ashdown wanted share of streaming revenues, chunk of Americans regular consumers of news on Facebook, Open Broadband project takes off.

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A third of Americans regularly consume news on Facebook, study finds.

October 6, 2021A federal judge dismissed a lawsuit from the City of Ashdown, Arkansas, which sought to take a share of Netflix and Hulu revenues generated from the city.

The lawsuit proposed that Hulu and Netflix owed money to Ashdown because of their use of public broadband infrastructure.

U.S. District Judge Susan Hickey arrived at the conclusion that the streaming services fall within an exclusion for public internet enshrined in the Video Service Act, a state law. Attorneys representing the city, however, claimed that the law requires a franchise fee of 5 percent to be paid to their municipality.

The important legal question was whether streaming services were offered over the “public” internet. Attorneys for Ashdown argued that since customers have to pay a premium for Hulu or Netflix, they are not public.

“The Court finds the analogy offered by Hulu on point: whether a driver locks the car doors while driving does not affect whether the road taken is a public road,” Judge Hickey responded.

A third of Americans get news from Facebook, study finds

A large percentage of Americans are receiving their news from social media platforms, despite recent controversies related to the platforms’ safety.

A recent study from The Pew Research Center, published late last month, found that 31 percent of Americans routinely receive their news from Facebook.

The research found that 22 percent of Americans routinely consumed news from Google’s Youtube, 13 percent from Twitter, 11 percent from Facebook’s Instagram, and six percent from TikTok.

People who regularly receive their news from Facebook are more likely to be women than men. White adult males, though, make up the majority of Facebook’s and Reddit’s regular news consumers. Black and Hispanic adults account for 20% and 33% of regular news consumers of Instagram respectively. And younger adults are far more likely to get their news from TikTok and Snapchat than any other demographic.

The research comes as more Americans hope for the government to curb the spread of misinformation. It also emerged before Frances Haugen, former Facebook product manager turned whistleblower, came forward Tuesday in front of a Senate committee to say that Facebook only takes down 3-5 percent of hate speech on its platform.

The Broadband Forum launches Open Broadband project

The Broadband Forum has launched a new project, Open Broadband, in order to use open-source collaboration to help vendors and operators introduce products to market quicker and with reduced development time cycles.

Open Broadband said it hopes to create a gold-standard for 5G residential technologies, which use open-source technologies for 5G rollout.

Founding members from BT, Deutsche Telekom, Telecom Italia, Telstra, Verizon and Vodafone UK began the project last month. Project leader David Woolley said there was a need for customer premises equipment (CPE) manufacturers, end-to-end integrators, and hardware and software vendors, “to join the project and share ideas.”  The project participation agreement can be found online here.

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Tech Against Texas Social Media, Alabama Middle Mile Grant, IP3 Awards Bestowed

Two information technology industry groups are trying to stall implementation of Texas’ social media law.

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Photo of IP3 Award winner Kyle Courtney at Public Knowledge's award ceremony Thursday by Drew Clark

September 30, 2022 – Plaintiffs NetChoice and the Computer & Communications Industry Association on Thursday petitioned the Fifth Circuit of Appeals to delay the implementation of a Texas law that limits social media companies’ ability to moderate content on their platforms.

The Texas law – H.B. 20 – would limit the ability of large social media companies to remove user speech from their platforms based on viewpoint. Supporters of the law say it will prevent platforms such as Twitter from discriminating against conservative political speech.

H.B. 20 was initially blocked by a federal judge last year, but the Fifth Circuit upheld the bill earlier this month. The plaintiffs say they will soon file a petition for a writ of certiorari at the Supreme Court. Thursday’s motion attempts to prevent H.B. 20 from taking effect before the High Court weigh ins.

“There is no question that a law that defies over two centuries of First Amendment protections warrants further federal court review,” said a statement from CCIA President Matt Schruers.

“If states like Texas are allowed to issue must-carry mandates, internet users can expect a torrent of dangerous content and misinformation, just as we head into an election season. Given the implications for the First Amendment and democratic institutions, we are asking the court to block this statute from taking effect until its constitutional problems have been heard.”

Alabama invests in middle-mile infrastructure

Alabama Gov. Kay Ivey announced Tuesday a $82.45 million grant to Fiber Utility Network, a conglomerate of eight rural electric cooperatives.

The grant will fund a middle-mile network that is expected to connect nearly 3,000 miles of fiber infrastructure within three years. The Alabama Department of Economic and Community Affairs’ Alabama Digital Expansion Division will administer the grant, the funds for which came from the American Rescue Plan Act.

“Achieving full broadband coverage is a journey, not a short trip, and today is an important step toward completing that journey. The Alabama Middle-Mile project – the infrastructure setting part of this journey – is going to lead our state to be the model for the nation when it comes to providing broadband capabilities,” said Ivey.

“In 2022, being able to be connected at home, work or on the on go is absolutely necessary, and this is certainly key to making that a reality.”

“The eight electric cooperatives that make up the Fiber Utility Network are honored to be a part of building a middle mile network to bring internet service closer to those Alabamians,” said Tom Stackhouse, president of the Fiber Utility Network. “We want to thank Governor Ivey and the staff at ADECA for the vision, leadership and assistance to make this a reality.”

Public Knowledge honors IP3 awardees, for Internet Protocol, Information Policy and Intellectual Property

Public Knowledge hosted the 19th annual IP3 Awards ceremony Thursday, honoring leading voices in technology and tech policy.

Public Knowledge presented the “Internet Protocol Award” to House Majority Whip Jim Clyburn, D-S.C., chair of the House Rural Broadband Taskforce, for his work promoting affordable broadband access. Notably, his work advanced the broadband-funding provisions of the Infrastructure Investment and Jobs Act.

Emma Llanso, director of the Center for Democracy & Technology’s Free Expression Project, received the “Information Policy Award” for her work promoting free expression online.

Kyle Courtney, copyright advisor at Harvard University, received the “Intellectual Property Award.” He works extensively on copyright and library-related legal issues.

Courtney developed the Copyright First Responders program to “help advance teaching, learning, and scholarship through community engagement with copyright.”

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Shielding Broadband Grants from Taxes, American at ITU, Google Fiber Multi-Gig Speeds

Legislation introduced Thursday would shield federal broadband funding from being taxed.

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Doreen Bogdan-Martin delivers her acceptance speech as ITU Secretary-General-elect. photo by Rowan Farrell, ITU

September 29, 2022 – A bill introduced Thursday would shield federal broadband money from being taxed.

The Broadband Grant Tax Treatment Act, introduced by Sen. Mark Warner, D-Va., and Sen. Jerry Moran, R-Kan., proposes to amend the Internal Revenue Code so that funding for broadband from the Infrastructure, Investment and Jobs Act and the American Rescue Plan Act won’t be considered taxable income.

“Grants awarded to industry for the purposes of broadband deployment are currently factored into a company’s income and will soon be subjected to additional taxes due to scheduled changes to the corporate tax code that kick in beginning next year – unless Congress acts now to address the problem,” a press release said.

Warner said in a press release that if these investments were taxed, the outcome would be counterproductive and would cause companies to not ask for grants if they knew they’d be receiving a higher tax upon receiving grants, adding it could “ultimately diminish efforts to give Americans access to high-speed internet.”

“We appreciate the leadership of Senators Warner and Moran for their efforts to eliminate the tax on broadband grants. With an eye toward 100 percent connectivity, Congress made a historic investment in the broadband grant program in 2021,” Brandon Heiner, senior vice president of government affairs at industry trade group USTelecom, said in a statement.

“However, requiring grant recipients to return as much as 20 percent of those grants in the form of taxes jeopardizes our shared goal of universal connectivity. It is vital that Congress move to eliminate this tax, as America’s broadband providers carefully plan and prepare to allocate resources to connect as many Americans as possible.”

Doreen Bogdan-Martin first female elected to lead ITU

American Doreen Bogdan-Martin was elected secretary general of the International Telecommunications Union Thursday, becoming the first female to take the lead role of the United Nations’ telecommunications regulator.

Bogdan-Martin, who will lead the ITU for the next four years, secured 139 votes to 25 for Russian challenger Rashid Ismailov in votes Thursday at the Plenipotentiary Conference in Bucharest, Romania.

“I believe we, the ITU and our members, have an opportunity to make a transformational contribution. Continuous innovation can and will be a key enabler to facilitate resolution of many of these issues,” Bogdan-Martin said in a statement.

The ITU develops international connectivity standards in communications networks and improving access to information and communication technologies for underserved communities worldwide.

“[Bogdan-Martin will be a tremendous leader for the [ITU],” Alan Davidson, head of the National Telecommunications and Information Administration, said on Twitter. “We support her vision of open, free, secure and inclusive communications networks, available to all,”

In a statement, Matt Schruers, president of the Computer and Communications Industry Association, said, “We applaud the election of an expert veteran to lead the ITU, and support global efforts in maintaining internet freedoms that promote access to information and democracy.

“The ITU plays an important role in facilitating international connectivity in communications networks, and we look forward to working with ITU leadership to carry out the organization’s important mission.”

Last week, President Joe Biden announced his support for the American as a candidate for the position.

Google Fiber tests at 20 Gbps, will announce multi-gig service tiers

Google Fiber said in a blog post Tuesday that it will have announcements about upcoming multi-gigabit service tiers, after its fiber product hit download speeds of 20.2 gigabits per second in a home test in Kansas City.

The company said in the post that the new test is part of its move toward “dramatically” expanded multi-gigabit tiers of service, and an overall goal of hitting the 100 Gigabits per second download and upload milestone.

“We believe that many, if not most, communities across America will ultimately have at least two, if not three, fiber providers and an incumbent coax provider. We see it in communities we plan to build in, and expect investment in the industry to continue,” the post said.

“This means that a fiber network alone will no longer be the differentiating factor it once was for internet providers,” it added. “The unique selling points will be how that network is built to deliver symmetrical multi-gig speed at accessible pricing — all with a focus on enabling service that takes advantage of that speed not just to the home but in the home, as well.”

Google Fiber is a sponsor of Broadband Breakfast.

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NTIA Updates Website, New Head of FCC’s Native Affairs Office, Study Criticizes FTC Regulatory Reach

Updates to the Commerce agency’s website includes access to information about other federal broadband programs.

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Photo of FCC Chairwoman Jessica Rosenworcel, via Flickr.

September 28, 2022 – The National Telecommunications and Information Administration released an update to its Federal Funding website last week.

Advertised by the NTIA as a “one-stop-shop” for federal broadband-funding resources, the new site provides “funding opportunities and information on more than 80 federal programs across 14 federal agencies.”

“The [NTIA] has been working to expand access and increase connectivity across the U.S. through the Internet for All effort by increasing awareness of federal funding available for closing the digital divide,” the NTIA’s announcement said.

To navigate various funding and program types, the new site allows potential grant applicants to search by agency, eligible recipient–type, and “program purpose.” The NTIA’s announcement says the new site now includes fields for “Matching Requirements,” “Speed/Technical Requirement for Broadband Infrastructure,” and more.

“Notably, the site features many new programs, including those that were funded through President Biden’s Bipartisan Infrastructure Law including the Department of Commerce’s Broadband Equity, Access, and Deployment (BEAD), Enabling Middle Mile Broadband Infrastructure, and Digital Equity Act programs,” it says.

New chief of FCC’s native affairs office

Federal Communications Commission Chairwoman Jessica Rosenworcel announced Tuesday that Denise Bambi Kraus will be the next chief of the agency’s Office of Native Affairs and Policy.

The FCC’s announcement laid out four primary objectives for Kraus’s tenure at ONAP: Inclusion of tribal communities in the agency’s mapping initiative, tribal engagement in the E-rate program, promotion of the Affordable Connectivity Program in tribal communities, and “work[ing] to develop a framework for long term telecommunications infrastructure sustainability.”

Kraus is of Tlingit heritage and was the National Tribal Affairs advisor for the Federal Emergency Management Agency before being tapped to be ONAP’s chief.

“I am thrilled Bambi is joining us. Her wealth of experience will be an asset as we advance the agency’s work to ensure modern communications reaches us all, including Native communities,” Rosenworcel said.

Phoenix Center study argues the FTC is overextending itself

A new study from the Phoenix Center argues that Federal Trade Commission’s advanced notice of proposed rulemaking on “commercial service and data security” is overly broad, economically detrimental, and potentially in conflict with existing law.

According to the study, the ANPR – which contains 95 questions and was released for public comment in August – covers a wide range of topics but fails to account for many “factual complexities” native to those topics. In addition, the study says the ANPR suggests the introduction of a heavily regulatory burden that may be unmanageable for small companies.

The study also says the ANPR suggests regulations that, by considering issues outside of the “deceptive acts and practices as proscribed by the [Federal Trade Commission] Act,” exceed the agency’s statutory authority.

Finally, the study argues that the rules which may result from the ANPR would likely be vulnerable to legal challenge. Cited is Supreme Court’s recent decision in West Virginia v. EPA, in which the majority invoked the “major questions doctrine.” The major questions doctrine is the legal theory that administrative agencies cannot take it upon themselves to regulate on major policy questions absent a clear statutory mandate.

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