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ICLE Response to NTIA Request for Comments on Mobile App Ecosystem

Regulatory Comments Executive Summary Our response to the National Telecommunications and Information Administration’s (“NTIA”) request for comments (“RFC”) is broken into two parts. The first part raises . . .

Executive Summary

Our response to the National Telecommunications and Information Administration’s (“NTIA”) request for comments (“RFC”) is broken into two parts. The first part raises concerns regarding what we see as the NTIA’s uncritical acceptance of certain contentious assumptions, as well as the RFC’s pre-commitment to a particular political viewpoint. The second part responds to several of the most pressing and problematic substantive questions raised in the RFC.

The RFC appears intended to invite comments that conform to a pre-established commitment to interventionist policy. The heuristics and assumptions on which it relies anticipate the desired policy outcome, rather than setting a baseline for genuine input and debate. Unfortunately, these biases also appear to carry over to the substantive questions. These comments offer four substantive observations:

First, that interoperability is not a panacea for mobile-apps ecosystems. There are risks and benefits that attend interoperability and these risks and benefits manifest differently for different groups of end-users and distributors. Specifically, some users may prefer “closed” platforms that offer a more curated experience with enhanced security features.

Second, considerations of security are intrinsic to determining whether interoperability is feasible or desirable. Centralized app distribution is what allows platforms like the App Store to filter harmful content through a two-tiered process of both human and automated app review. Such control over the ecosystem’s content would necessarily be relinquished if third-party app distribution and payment systems were allowed on “closed” platforms.

Third, determinations of “user benefit” in the mobile-app ecosystem must account for both end-users and developers. Where the interests of the two sides of the market conflict, total output—rather than price—should be the relevant benchmark.

Fourth, there is no objective “correct balance” between security and access. Some end-users and developers prefer more curated and ostensibly safer ecosystems, while others are most concerned with the sheer quantity of options. The NTIA should not substitute its own preferences for the revealed preferences of millions of users and distributors.

Read the full comments here.

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Antitrust & Consumer Protection

US-EU Agreement Hopes to Keep Transatlantic Data Flowing

TOTM Though details remain scant (and thus, any final judgment would be premature),  initial word on the new Trans-Atlantic Data Privacy Framework agreed to, in principle, by the . . .

Though details remain scant (and thus, any final judgment would be premature),  initial word on the new Trans-Atlantic Data Privacy Framework agreed to, in principle, by the White House and the European Commission suggests that it could be a workable successor to the Privacy Shield agreement that was invalidated by the Court of Justice of the European Union (CJEU) in 2020.

Read the full piece here.

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Telecommunications & Regulated Utilities

The Return of (De Facto) Rate Regulation: Title II Will Slow Broadband Deployment and Access

TOTM President Joe Biden’s nomination of Gigi Sohn to serve on the Federal Communications Commission (FCC)—scheduled for a second hearing before the Senate Commerce Committee Feb. 9—has been . . .

President Joe Biden’s nomination of Gigi Sohn to serve on the Federal Communications Commission (FCC)—scheduled for a second hearing before the Senate Commerce Committee Feb. 9—has been met with speculation that it presages renewed efforts at the FCC to enforce net neutrality. A veteran of tech policy battles, Sohn served as counselor to former FCC Chairman Tom Wheeler at the time of the commission’s 2015 net-neutrality order.

Read the full piece here.

 

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Telecommunications & Regulated Utilities

The FTC’s Privacy Report Fails to Justify Asymmetric Regulation of ISPs

TOTM Others already have noted that the Federal Trade Commission’s (FTC) recently released 6(b) report on the privacy practices of Internet service providers (ISPs) fails to comprehend that widespread adoption . . .

Others already have noted that the Federal Trade Commission’s (FTC) recently released 6(b) report on the privacy practices of Internet service providers (ISPs) fails to comprehend that widespread adoption of privacy-enabling technology—in particular, Hypertext Transfer Protocol Secure (HTTPS) and DNS over HTTPS (DoH), but also the use of virtual private networks (VPNs)—largely precludes ISPs from seeing what their customers do online.

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Data Security & Privacy

The BIF Offers a Good First Step for Broadband, but the Devil Will Be in the Details

TOTM Capping months of inter-chamber legislative wrangling, President Joe Biden on Nov. 15 signed the $1 trillion Infrastructure Investment and Jobs Act (also known as the bipartisan infrastructure . . .

Capping months of inter-chamber legislative wrangling, President Joe Biden on Nov. 15 signed the $1 trillion Infrastructure Investment and Jobs Act (also known as the bipartisan infrastructure framework, or BIF), which sets aside $65 billion of federal funding for broadband projects. While there is much to praise about the package’s focus on broadband deployment and adoption, whether that money will be well-spent  depends substantially on how the law is implemented and whether the National Telecommunications and Information Administration (NTIA) adopts adequate safeguards to avoid waste, fraud, and abuse.

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Telecommunications & Regulated Utilities

Internet Speed: What Do Consumers Actually Demand?

TL;DR President Joe Biden has called for “future-proof” broadband infrastructure as part of his Build Back Better plan, and some members of the U.S. Senate want the Federal Communications Commission (FCC) to update its definition of broadband to comprise both download and upload speeds of at least 100 Mbps.

Background…

President Joe Biden has called for “future-proof” broadband infrastructure as part of his Build Back Better plan, and some members of the U.S. Senate want the Federal Communications Commission (FCC) to update its definition of broadband to comprise both download and upload speeds of at least 100 Mbps. States like California have likewise advanced bills to prioritize funding for infrastructure that supports 100 Mbps or greater download speeds. It is widely believed that the FCC will update the definition of broadband from the 2015 standard of 25 Mbps download/3 Mbps upload speeds.

But…

Studies of U.S. broadband usage suggest that typical consumers do not need upload speeds to be as fast as download speeds. Moreover, they typically require download speeds of less than 100 Mbps. Linking public funding to a required symmetrical 100 Mbps  speed tier, or using that tier as a benchmark to define adequate broadband deployment, would have negative consequences for broadband buildout.

Read the full explainer here.

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Telecommunications & Regulated Utilities

Issue Brief: Pole Attachments and Broadband Build-out

ICLE Issue Brief President Joe Biden has made broadband build-out part of his Build Back Better plan, arguing that it constitutes essential infrastructure, much like electricity and water. . . .

President Joe Biden has made broadband build-out part of his Build Back Better plan, arguing that it constitutes essential infrastructure, much like electricity and water. The plan calls for $100 billion in subsidies for “future-proof” broadband—that is, connection modes that are expected to meet, or can be readily upgraded to meet, future connectivity needs—with a particular focus on municipal broadband and other nonprofit Internet service providers (ISPs). Congress also has taken up the question of broadband subsidies as part of its ongoing debate over infrastructure spending. But while it is important to get subsidies right, the most expedient public-policy change to ensure greater deployment and adoption of broadband would be to reform policies that needlessly impede the construction and efficient operation of broadband services.

Broadband connectivity continues to be a top priority for the Federal Communications Commission (FCC) and for state and local governments. But to build out wireline broadband, ISPs need access to poles, many of which are owned by electric cooperatives, utilities, and municipal governments. Unfortunately, these entities can charge exorbitant prices to access the necessary inputs. Moreover, the cost to replace, repair, and improve these poles is frequently offloaded onto ISPs and other attachers. These practices drive up the cost to deploy broadband, leading to slower deployment and higher prices for consumers.

The more expensive deployment becomes, the more difficult it is for providers to realize sustainable profits on those investments. This dynamic invariably leads to more selective use of scarce resources, to the detriment of costlier, less-profitable rural deployment. The challenge confronting policymakers and industry alike is how best to equitably and cost-effectively allocate the expenses associated with pole attachments.

The FCC has authority under Section 224 of the Communications Act to review the rates charged for pole attachments to ensure that they are “just and reasonable.” Pursuant to that authority, the FCC recently found that “utilities throughout the country have disparate and inconsistent practices with regard to cost responsibility for pole replacements.” The FCC also declared it unreasonable for utilities to “impose the entire cost of a pole replacement on a requesting attacher when the attacher is not the sole cause of the pole replacement.”

In order to facilitate greater broadband deployment, the FCC should consider rulemaking governing how to allocate pole-replacement costs more equitably. States should also reform how the costs of upgrades are distributed when municipal governments and electric cooperatives own the poles.

Read the full issue brief here.

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Telecommunications & Regulated Utilities

Build Broadband Better: Focus on Competition, Not Competitors

TOTM President Joe Biden named his post-COVID-19 agenda “Build Back Better,” but his proposals to prioritize support for government-run broadband service “with less pressure to turn . . .

President Joe Biden named his post-COVID-19 agenda “Build Back Better,” but his proposals to prioritize support for government-run broadband service “with less pressure to turn profits” and to “reduce Internet prices for all Americans” will slow broadband deployment and leave taxpayers with an enormous bill.

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Telecommunications & Regulated Utilities

Encouraging Broadband Deployment: Removing Regulatory Barriers

TL;DR As part of its ongoing debate over infrastructure spending, Congress should consider how to best encourage broadband deployment.

Background…

As part of its ongoing debate over infrastructure spending, Congress should consider how to best encourage broadband deployment. Lawmakers have been considering ways to fund deployment, particularly through subsidies to users or providers.

But…

As important as it is to get subsidies right, the lowest-hanging fruit to facilitate deployment and adoption of broadband is to reform policies that needlessly impede the construction and efficient operation of broadband services. Chief among those are rules governing pole attachments and eligible telecommunications carrier (ETC) requirements.

Read the full explainer here.

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Telecommunications & Regulated Utilities