Pai

WASHINGTON (Reuters) – The U.S. Federal Communications Commission voted along party lines on Thursday to repeal landmark 2015 rules aimed at ensuring a free and open internet, setting up a court fight over a move that could recast the digital landscape.

The approval of FCC Chairman Ajit Pai’s proposal marked a victory for internet service providers like AT&T Inc, Comcast Corp and Verizon Communications Inc and hands them power over what content consumers can access.

Democrats, Hollywood and companies like Google parent Alphabet Inc and Facebook Inc had urged Pai, a Republican appointed by U.S. President Donald Trump, to keep the Obama-era rules barring service providers from blocking, slowing access to or charging more for certain content.

Consumer advocates and trade groups representing content providers have planned a legal challenge aimed at preserving those rules.

The meeting was evacuated before the vote for about 10 minutes due to an unspecified security threat, and resumed after law enforcement with sniffer dogs checked the room.

New York Attorney General Eric Schneiderman, a Democrat, said in a statement he will lead a multi-state lawsuit to challenge the reversal. He called the vote “a blow to New York consumers, and to everyone who cares about a free and open internet.”

FCC Commissioner Mignon Clyburn, a Democrat, said in the run-up to the vote that Republicans were “handing the keys to the Internet” to a “handful of multi-billion dollar corporations.”

Shares of Alphabet, Apple Inc and Microsoft Corp moved lower after the vote.

Schneiderman

Pai has argued that the 2015 rules were heavy handed and stifled competition and innovation among service providers.

“The internet wasn’t broken in 2015. We weren’t living in a digital dystopia. To the contrary, the internet is perhaps the one thing in American society we can all agree has been a stunning success,” he said on Thursday.

The FCC voted 3-2 to repeal the rules.

NEXT STEPS

Consumers are unlikely to see immediate changes resulting from the rule change, but smaller startups worry the lack of restrictions could drive up costs or lead to their content being blocked.

Internet service providers say they will not block or throttle legal content but that they may engage in paid prioritization. They say consumers will see no change and argue that the largely unregulated internet functioned well in the two decades before the 2015 order.

Democrats have pointed to polls showing a repeal is deeply unpopular and say they will prevail in protecting the rules, either in the courts or in U.S. Congress.

FCC Commissioner Jessica Rosenworcel, a Democrat, said in a written dissent released on Thursday that the decision grants internet providers “extraordinary new power” from the FCC.

“They have the technical ability and business incentive to discriminate and manipulate your internet traffic. And now this agency gives them the legal green light to go ahead,” she said.

Several state attorneys general said before the vote they would work to oppose the ruling, citing problems with comments made to the FCC during the public comment period. Other critics have said they will consider challenging what they consider to be weaker enforcement.

Net neutrality supporters had rallied in front of the FCC building in Washington before the vote.

The 2015 rules were intended to give consumers equal access to web content and prevent broadband providers from favoring their own content. Pai proposes allowing those practices as long as they are disclosed.

Michael Powell, a former FCC chairman who heads a trade group representing major cable companies and broadcasters, told reporters earlier this week that internet providers would not block content because it would not make economic sense.

“They make a lot of money on an open internet,” Powell said, adding it is “much more profitable” than a closed system. “This is not a pledge of good-heartedness, it’s a pledge in the shareholders’ interest.”

The chief executive of USTelecom, a lobbying group that represents internet providers and the broadband industry, said in a statement the industry has “renewed confidence to make the investments required to strengthen the nation’s networks and close the digital divide, especially in rural communities.”

A University of Maryland poll released this week found that more than 80 percent of respondents opposed a repeal. The survey of 1,077 registered voters was conducted online by the Program for Public Consultation at the University of Maryland from Dec. 6-8.

Reporting by David Shepardson; Writing by Chris Sanders; Editing by Jonathan Oatis and Meredith Mazzilli

Pai

WASHINGTON (Reuters) – The head of the U.S. Federal Communications Commission unveiled plans on Tuesday to repeal landmark 2015 rules that prohibited internet service providers from impeding consumer access to web content in a move that promises to recast the digital landscape.

FCC chief Ajit Pai, a Republican appointed by President Donald Trump in January, said the commission will vote at a Dec. 14 meeting on his plan to rescind the so-called Net Neutrality rules championed by Democratic former President Barack Obama that treated internet service providers like public utilities.

The rules barred broadband providers from blocking or slowing down access to content or charging consumers more for certain content. They were intended to ensure a free and open internet, give consumers equal access to web content and prevent broadband service providers from favoring their own content.

The action marks a victory for big internet service providers such as AT&T, Comcast and Verizon Communications that opposed the rules and gives them sweeping powers to decide what web content consumers can get and at what price.

It represents a setback for Google parent Alphabet Inc and Facebook, which had urged Pai not to rescind the rules.

With three Republican and two Democratic commissioners, the move is all but certain to be approved. Trump, a Republican, expressed his opposition to Net Neutrality in 2014 before the regulations were even implemented, calling it a “power grab” by Obama.

Pai said his proposal would prevent state and local governments from creating their own Net Neutrality rules because internet service is “inherently an interstate service.” The preemption is most likely to handcuff Democratic-governed states and localities that could have considered their own plans to protect consumers’ equal access to internet content.

“The FCC will no longer be in the business of micromanaging business models and preemptively prohibiting services and applications and products that could be pro-competitive,” Pai said in an interview, adding that the Obama administration had sought to pick winners and losers and exercised “heavy-handed” regulation of the internet.

“We should simply set rules of the road that let companies of all kinds in every sector compete and let consumers decide who wins and loses,” Pai added.

Tom Wheeler, who headed the FCC under Obama and advocated for the Net Neutrality rules, called the planned repeal “a shameful sham and sellout. Even for this FCC and its leadership, this proposal raises hypocrisy to new heights.”

AT&T, Comcast and Verizon have said that repealing the rules could lead to billions of dollars in additional broadband investment and eliminate the possibility that a future presidential administration could regulate internet pricing.

‘HEAVY COSTS’

Pelosi: FCC move will hurt consumers and chill competition.

Verizon said it believed the FCC “will reinstate a framework that protects consumers’ access to the open internet, without forcing them to bear the heavy costs from unnecessary regulation.”

The Internet Association, representing major technology firms including Alphabet and Facebook, said Pai’s proposal “represents the end of Net Neutrality as we know it and defies the will of millions of Americans. This proposal undoes nearly two decades of bipartisan agreement on baseline Net Neutrality principles that protect Americans’ ability to access the entire internet.”

Pai’s proposal would require internet service providers to disclose whether they allow blocking or slowing down of consumer web access or permit so-called internet fast lanes to facilitate a practice called paid prioritization of charging for certain content. Such disclosure will make it easier for another agency, the Federal Trade Commission, to act against internet service providers that fail to disclose such conduct to consumers, Pai said.

A U.S. appeals court last year upheld the legality of the Net Neutrality regulations, which were challenged in a lawsuit led by telecommunications industry trade association US Telecom.

The group praised Pai’s decision to remove “antiquated, restrictive regulations” to “pave the way for broadband network investment, expansion and upgrades.”

The FCC’s repeal is certain to draw a legal challenge from advocates of Net Neutrality.

Nancy Pelosi, the top U.S. House of Representatives Democrat, said the FCC move would hurt consumers and chill competition, saying the agency “has launched an all-out assault on the entrepreneurship, innovation and competition at the heart of the internet.”

Republican Senator John Thune said Pai’s plan was an improvement over the Obama rules but that “the only way to create long-term certainty for the internet ecosystem is for Congress to pass a bipartisan law.”

The planned repeal represents the latest example of a legacy achievement of Obama being erased since Trump took office in January. Trump has abandoned international trade deals, the landmark Paris climate accord and environmental protections, taken aim at the Iran nuclear accord and closer relations with Cuba, and sought repeal Obama’s signature healthcare law.

Pai, who has moved quickly to undo numerous regulatory actions since becoming FCC chairman, is pushing a broad deregulatory agenda. Pai said he had not shared his plans on the rollback with the White House in advance or been directed to undo Net Neutrality by White House officials.

The FCC under Obama regulated internet service providers like public utilities under a section of federal law that gave the agency sweeping oversight over the conduct of these companies.

Language in the new proposal would give the FCC significantly less authority to oversee the web. The FCC granted initial approval to Pai’s plan in May, but had left open many key questions including whether to retain any legal requirements limiting internet providers conduct.

His plan also would eliminate the “internet conduct standard,” which gave the FCC far-reaching discretion to prohibit internet service provider practices deemed to violate a list of factors and sought to address future discriminatory conduct.

Reporting by David Shepardson; Editing by Will Dunham

The Federal Communications Commission has quietly approved the acquisition of Alaska’s largest cable operator by John Malone’s Liberty Interactive with no deal conditions or consumer protections, despite fears the merger will lead to monopoly abuse.

The purchase of Alaska’s General Communications Inc. (GCI) in an all-stock deal valued at $1.12 billion was announced in April 2017. GCI currently offers cable TV and broadband service to 108,000 customers across Alaska, and runs a wireless company.

“We conclude that granting the applications serves the public interest,” the FCC wrote. “After thoroughly reviewing the proposed transaction and the record in this proceeding, we conclude that applicants are fully qualified to transfer control of the licenses and authorizations […] and that the transaction is unlikely to result in public interest harms.”

Various groups and Alaska’s largest phone company petitioned the FCC to deny the merger, claiming GCI’s existing predatory and discriminatory business practices would “continue and worsen upon consummation of the deal.”

Malone

Those objecting to the merger claimed GCI already has monopoly control over broadband-capable middle-mile facilities in “many locations in rural Alaska” and that GCI has refused to allow other service providers wholesale access to that network on “reasonable” terms. They also claimed GCI received substantial taxpayer funds to offer service in Alaska, but in turn charges monopoly rates to schools, libraries, and rural health care providers, as well as residential customers.

Essentially quoting from Liberty’s arguments countering the accusations, the FCC completely dismissed opponents’ claims, noting that Liberty does not provide service in Alaska, meaning there are no horizontal competitive effects that would allow GCI Liberty to control access to more facilities than it does now. On the contrary, the FCC ruled, the merger with a larger company meant the acquisition was good for Alaska.

“Rather than eliminating a potential competitor from the marketplace or combining adjacent entities in a manner that increases their ability to resist third-party competition, […] [this] transaction results in GCI becoming part of a diversified parent entity that will provide more resources for its existing Alaska operations.”

The FCC also rejected claims GCI engages in monopolistic, anti-competitive behavior, ruling that past claims of charging above-market prices are “not a basis for denying the proposed transaction because the allegations are non transaction-specific.”

“Although ACS [Alaska’s largest telephone company] claims that the transaction will exacerbate the behavior it finds objectionable, we see no reason to assume that GCI will have greater ability or incentive to discriminate against rivals in Alaska simply because it has access to more financial resources,” the FCC ruled. “To the contrary, the Commission has generally found that a transaction that could result in a licensee having access to greater resources from a larger company promotes competition, potentially resulting in greater innovation and reduced prices for consumers.”

GCI’s current internet plans are considered more expensive and usage capped than other providers.

In almost every instance, the FCC order approving the merger was in full and complete agreement with the arguments raised by Liberty Interactive in favor of the deal. This also allowed the FCC to reject in full any deal conditions that would have resulted in open access to GCI’s network on fair terms and a requirement to charge public institutions the same rates GCI charges its own employees and internal businesses.

The FCC also accepted at face value Liberty’s arguments that as a larger, more diversified company, it can invest in and operate GCI more reliably than its existing owners can.

“We find that this is likely to provide some benefit to consumers,” the FCC ruled. But the agency also noted that because Liberty executives did not specify that the deal will result in specific, additional deal commitments, “the amount of anticipated service improvements that are likely to result from the […] transaction are difficult to quantify.”

The Justice Department and the Federal Trade Commission earlier approved the merger deal. Most analysts expect the new company, GCI Liberty, exists only to allow Malone to structure the merger with little or no owed tax. Most anticipate that after the merger is complete, the company will be eventually turned over to Charter Communications, where it will operate under the Spectrum brand.

Pai

WASHINGTON (Reuters) – The U.S. Federal Communications Commission’s chairman said Tuesday the agency does not have authority to revoke broadcast licenses, despite suggestions from President Donald Trump.

Ajit Pai, a Republican who was named chairman of the telecommunications regulator in January, broke days of silence by rejecting Trump’s tweet that the FCC could challenge the license of NBC after stories Trump declared were not true.

“Under the law, the FCC does not have the authority to revoke a license of a broadcast station based on the content,” Pai said at a forum. “The FCC under my leadership will stand for the First Amendment.”

The First Amendment of the U.S. Constitution guarantees freedom of speech and freedom of the press.

Democrats had been pushing Pai to denounce Trump’s suggestion that broadcast licenses could be threatened following reports by NBC News that his secretary of state, Rex Tillerson, had called him a “moron” after a discussion of the U.S. nuclear arsenal.

“With all of the Fake News coming out of NBC and the Networks, at what point is it appropriate to challenge their License? Bad for country!” Trump tweeted last Wednesday.

Trump and his supporters have repeatedly used the term “fake news” to cast doubt on media reports critical of his administration, often without providing any evidence to support their case that the reports were untrue.

Any move to challenge media companies’ licenses, however, would likely face significant hurdles.

The FCC, an independent federal agency, does not license broadcast networks, but issues them to individual broadcast stations that are renewed on a staggered basis for eight-year periods.

Comcast Corp, which owns NBC Universal, also owns 11 broadcast stations, including outlets in New York, Washington, Los Angeles, San Francisco, Boston, Dallas and Chicago.

When reviewing licenses the FCC must determine if a renewal is in the public interest. Courts have held that a station exercising its First Amendment rights is not adequate grounds to challenge a license.

The agency does not issue similar licenses for cable networks such as CNN and MSNBC, or regulate internet news or other websites.

In the early 1970s, then-President Richard Nixon and his top aides discussed using the FCC’s license renewal process as a way of punishing The Washington Post for its coverage of the Watergate burglary that ultimately brought down his presidency.

Reporting by David Shepardson; Editing by Jonathan Oatis

As Puerto Rico approaches the first month anniversary of Hurricane Maria, only small amounts of incremental progress have been made restoring the island’s telecommunications networks badly damaged by the storm.

Wireless Service

According to the Federal Communications Commission, 75.3% of Puerto Rico’s cell towers are still out of commission and many of those restored to service are functioning on generator backup, often using portable cell tower infrastructure that offers a fraction of the coverage area normal service used to provide. The majority of restored towers are in the immediate vicinity of San Juan, while many other parts of the island remain totally without service. Claro, a Mexican-owned cell company that used to offer the best coverage across Puerto Rico still remains the most reliable after the storm. All four wireless companies operating in Puerto Rico are offering free roaming to customers so as towers are restored to service, the companies can provide coverage to as many residents as possible.

Satellite Cells on Light Trucks (COLTs) have been deployed in Aguadilla, Arecibo, Cayey, Caomo Sur, Fajardo, Guayama, Manati, Mayaguez Mesa, San German, Vega Baja, and Yauco and Terrestrial Cells on Wheels (COWs)/COLTs in Humacao, Quebradillas, Rio Grande, and Utuado.

The FCC believes approximately 61% — one percent higher than last week — of the population can now get some cell signal. But that figure is slightly misleading because the largest percentage of the population lives around or in San Juan, the city with the best service restoration so far.

In contrast, most cell sites in Texas, Louisiana, Mississippi, Alabama, Georgia, and the Florida Panhandle affected by two earlier hurricanes were restored to service within two weeks. Cellular providers point out the reason for the difference is the availability of commercial power and reliable backup generators, both not widely available in Puerto Rico even now.

The U.S. Virgin Islands, also devastated by Hurricane Marie, are also struggling with repair efforts. At least 55.4% of cell towers are out of service on those Caribbean islands, with 88.9% still down on St. John, the smallest of the three islands that make up the U.S. territory. Because repair efforts have been more effective on the other two islands, about 88% of the territory can now get a cell signal.

Electricity

NBC News reported today that 17.7% of Puerto Rico now has electricity, but it is very unreliable and there are daily outages that sometimes extend for hours. The Army Corps of Engineers hopes to have in place by next week — more than a month after Hurricane Maria made landfall in Puerto Rico — two 25-megawatt generators at a plant in San Juan to help stabilize electricity there. The generators arrived Oct. 13, and a target date of Oct. 25 may be missed because of ongoing inclement weather. Once installed, the generators will extend electricity to about 30% of the island — mostly in the northeastern section around San Juan — and stabilize power for those who already have it.

The government is prioritizing electricity restoration for public safety and hospitals, public/government institutions including sewage and water treatment plants, schools, and then the island’s large pharmaceutical industry, which own several large drug manufacturing plants.

The order of priority the government is giving to service restoration is upsetting Claro, one of the island’s largest cell companies.

“Businesses and the government itself can hardly operate efficiently without an appropriate telecommunications structure,” said Claro representative Pedro Andrés. “For example, without telecommunication services the bank could not operate and that means that there would be no access to money for people, businesses could not handle electronic transactions, medical plans would not work and suppliers could not dispatch. That is, the country would be paralyzed.”

Andrés wants the power authority to make sure that electric service is restored to cell towers as soon as practical.

Residents are being told they can expect 95% electricity service restoration by Dec. 15.

Cable and Telephone

Liberty Cablevision of Puerto Rico is only working for about 1% of its customers, so it is focusing on offering free Wi-Fi hotspots for now.

Diesel generators are currently powering some of the island’s 911 service centers, which are now back up and running normally.

Cable service remains basically non-existent in Puerto Rico because of the lack of electricity. Liberty Cablevision of Puerto Rico has reported it has restored full service to about 1% of its customers, although a significantly higher number will have service back immediately after electricity is restored. Liberty promises automatic service credits for the duration of the outage and has told customers to ignore billing that was already in the mail when the storm hit. Liberty is currently focused on reaching and retaining the goodwill of its customers with a network of free Wi-Fi hotspots.

The island’s landline provider reports there are six central switching offices out of service on the island and there are problems connecting long distance calls.

Broadcast Media

The following TV stations are confirmed operational: WKAQ, WIPR, WIPN, WTIN, and WNJX, but these nine are still off the air: WAPA, WIPM, WTCV, WUJA, WELU, WECN, WRSV, WORO, and WRUA.

As of today, 44 AM radio stations are confirmed to be on-the-air: WA2XPA, WALO, WAPA, WBMJ, WBQN, WCMN, WCPR, WDEP, WENA, WEXS, WGDL, WI2XAC, WI2XSO, WI3XSO, WIAC, WIDA, WIPR, WISO, WJIT, WKAQ, WKFE, WKJB, WKUM, WKVM, WLEO, WLEY, WMDD, WMNT, WNEL, WNIK, WOIZ, WOLA, WPAB, WPPC, WPRA, WPRP, WQII, WSKN, WSOL, WTIL, WUKQ, WUNO, WVJP, and WXEW.

These 29 AM radio stations are confirmed out of service: WABA, WBSG, WBYM, WCGB, WCMA, WDNO, WEGA, WFAB, WGIT, WHOY, WIBS, WISA, WIVV, WLRP, WMIA, WMSW, WNVI, WOQI, WORA, WOSO, WQBS, WRRE, WRSJ, WRSS, WUPR, WVOZ, WYAC, WYEL, and WYKO.

There are 36 FM radio stations back on the air: WAEL-FM, WCMN-FM, WEGM, WERR, WFID, WIDA-FM, WIDI, WIOA, WIOA-FM1, WKAQ-FM, WLUZ, WMAA-LP, WMEG, WNVM, WODA, WORO, WOYE, WPRM-FM, WPUC-FM, WPUC-FM1, WQML, WRIO, WRRH, WRTU, WRXD. WTOK-FM, WUKQ-FM, WVDJ-LP. WVIS, WVJP-FM, WXLX, WXYX, WYQE, WZNT, WZNT-FM1, and WZOL.

But these 22 FM radio stations are still out of service: W227CV, WCAD, WCAD-FM2, WCRP, WELX, WFDT, WIOC, WIPR-FM, WJDZ, WMIO, WNRT, WNVE, WQBS-FM, WTPM, WVQR, WXHD, WYAS, WZAR, WZCA, WZET, WZMT, and WZOL-FM3.