Pai Continues Radical Deregulation Agenda. Next On The Menu — SMS Texting and Short Codes

In December 2007, Public Knowledge (joined by several other public interest groups] filed a Petition For Declaratory Ruling asking the Federal Communications Commission (FCC) to clarify that both SMS Text Messaging and short codes are “Title II” telecommunications services. Put another way, we asked the FCC to reaffirm the basic statutory language that if you use telephones and the telephone network to send information from one telephone number to another, it meets the definition of “telecommunications service.” (47 U.S.C. 153(53)) We did this because earlier in 2007 Verizon had blocked NARAL from using its short code for political action alerts. While we thought there might be some question about short codes, it seemed pretty obvious from reading the statute that when you send “information between or among points of the users choosing, without change in the form or content as sent and received” (definition of “telecommunications”), over the phone network, using phone numbers that it is a “telecommunications service.”

 

Sigh.

 

On the anniversary of the repeal of net neutrality, FCC Chair Ajit Pai now proposes another goodie for carriers – classifying both short codes and text messages as Title I “information service” rather than a Title II telecommunications service. As this is even more ridiculous than last year’s reclassification of broadband as Title I, the draft Order relies primarily on the false claim that classifying text messaging as Title I is an anti-robocall measure. As we at PK pointed out a bunch of times when the wireless carriers first raised this argument back in 2008 – this is utter nonsense. Email, the archetypal Title I information service, is (as Pai himself pointed out over here) chock full of spam. Furthermore, as Pai pointed out last month, the rise in robocalls to mobile phones has nothing to do with regulatory classification and is primarily due to the carriers not implementing existing technical fixes. (And, as the Wall St J explained in this article, robocallers have figured out how to get paid just for connecting to a live number whether or not you answer, which involves a kind of arbitrage that does not work for text messages.)

 

As if that were not enough, the FCC issued a declaratory ruling in 2015, reaffirmed in 2016, that carriers may block unwanted calls or texts despite being Title II common carriers. There is absolutely nothing, nada, zip, zero, that classifying text messages as Title II does that makes it harder to combat spam. By contrast, Title II does prevent a bunch of blocking of wanted text messages as an anticompetitive conduct which we have already seen (and which is occurring fairly regularly on a daily basis, based on the record in the relevant FCC proceeding (08-7). This includes blocking immigrants rights groups, blocking health alerts, blocking information about legal medical marijuana, and blocking competing services. We should therefore treat the claims by industry and the FCC that only by classifying text messaging as “information services” can we save consumers from a rising tide of spam for what they are – self-serving nonsense designed to justify stripping away the few remaining enforceable consumer rights.

 

Once again, beyond the obvious free expression concerns and competition concerns, playing cutesy games with regulatory definitions will have a bunch of unintended consequences that the draft order either shrugs off or fails to consider. Notably:

 

  1. Classifying texting as Title I will take revenue away from the Universal Service Fund (USF). This will further undermine funds to support rural broadband.

 

  1. Classifying texting as Title I disrupts the current automatic roaming framework established by the FCC in 2007.

 

  1. Classifying texting as Title I may, ironically, take it out of the jurisdiction of the Robocall statute (Telephone Consumer Protection Act (TCPA) of 1991).

 

  1. Trashing whatever consumer protections, we have for text messages, and taking one more step to total administrative repeal of Title II completely. Which sounds like fun if you are a carrier but leaves us operating without a safety net for our critical communications infrastructure (as I’ve been writing about for almost ten years).

 

I unpack all of this below.

 

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We Need To Fix Media, Not Just Social Media — Part III

This is part of a continuing series of mine on platform regulation published by my employer, Public Knowledge. You can find the whole series here. You can find the original of this blog post here. This blog post is Part 3 of a three part series on media and social media. Part 1 is here, Part 2 is here. This version includes recommendations that are my own, and have not been reviewed by, or endorsed by, Public Knowledge.

 

And now . . . after more than 6,000 words of background and build up . . . my big reveal on how to fix the problems in media! You’re welcome.

 

Somewhat more seriously, I’ve spent a lot of time in Part 1 and Part 2 reviewing the overall history of the last 150 years of how technology and journalism inter-relate  because two critically important themes jump out. First, the evolution in communications technology always results in massive changes to the nature of journalism by enabling new forms of journalism and new business models. Sometimes these changes are positive, sometimes negative. But the dominance of the large media corporations financing news production and distribution through advertising revenue is not a natural law of the universe or necessarily the best thing for journalism and democracy. The Internet generally, and digital platforms such as news aggregators and social media specifically, are neither the solution to the dominance of corporate media as optimists hoped it would be or the source of all media’s problems as some people seem to think. Digital platforms are tools, and they have the same promise to utterly revolutionize both the nature of journalism and the business of generating and distributing news as the telegraph or the television.

 

In Part 2, I looked at how activists and journalists connected to social media used these tools in ways that changed the way in which the public observed the events unfolding in Ferguson in 2014, and how this challenged the traditional media narrative around race and policing in America. Combining the lessons from this case study with the broader lessons of history, I have a set of specific policy recommendations that address both the continued solvency of the business of journalism and steps to regain public trust in journalism.

 

More below . . .

 

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Why You Should Treat Any Predictions About Telecom/Tech Policy in 2019 Skeptically.

Under Section 217, Paragraph (b), sub (1) of the “wonk code of conduct,” I am required to provide some immediate analysis on what the election means for my area of expertise (telecom/tech, if you were wondering). So here goes.

 

  1. Everyone will still pretend to care deeply about the digital divide, particularly the rural digital divide.
  2. The MPAA, RIAA and all the usual suspects are probably already shopping their wish lists. This is great news to any recently elected member of staffer who was worried about needing to get tickets to “Fantastic Beasts” or whatever other blockbuster they will screen at MPAA HQ.
  3. Everyone will still talk about the vital importance of “winning” the “race to 5G” while having no clue what that actually means.

These predictions rank up there with “New England Patriots will play football, and everyone outside of New England will hate them” or “The media will spend more time covering celebrity ‘feuds’ than on major health crises like the famine in Yemen or Ebola outbreak in Congo.” They are more like natural laws of the universe than actual predictions. As for substance, y’all remember that Trillion dollar infrastructure bill Trump was gonna do in 2017? I suspect predictions about how federal policy is going to sort itself out will be just as reliable.

 

Why? Because at this stage there are just too many dang meta-questions unresolved. So rather than try to predict things, I will explain what pieces need to fall into place first.

 

Also, it’s worth noting that we had action on the state level that impacts tech and telecom. Start with Phil Weiser winning the election for State AG in Colorado. As Jon Oliver recently pointed out, don’t underestimate the importance of state AGs. This is particularly true for a tech savvy AG in a techie state. Then there is California’s governor-elect Gavin Newsom, who tried to address the digital divide as Mayor of San Francisco with a community wireless network back when people were trying that. Will he continue to make digital divide a major issue? But I’ll stick to my forte of federal policy for the moment.

 

Anyway, rather than try to predict what the policy will be, here’s what is going to have clarify first.

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