Requests for an FTC investigation into Disney and Sanrio for their alleged noncompliance with the Children’s Online Privacy Protection Act (COPPA) were filed by the Center for Digital Democracy Wednesday, said a CDD news release (http://bit.ly/1kiHcpR). Neither company “provides adequate notice or obtains verifiable parental consent prior to collecting, using, or disclosing personal information about its child users,” as required by the FTC’s revision of COPPA one year ago (CD Dec 20 p10), said the release. “These two complaints reveal a pattern of disturbing practices that threaten children’s privacy and undermine the ability of parents to control how information is collected and used,” said Executive Director Jeff Chester. The complaints (http://bit.ly/1gGGHG3, http://bit.ly/19yAfN6) are directed at Marvelkids.com, a Disney subsidiary, and the Hello Kitty Carnival mobile app, a joint venture between Typhoon Games and Sanrio, said the release. “CDD’s investigations should spur the FTC to investigate both these companies, and also closely review how many in the online marketing industry appear derelict in complying with the updated COPPA Rule,” said CDD Legal Director Hudson Kingston. The two companies had no comment.
"The years-long quest upon which the FCC has been embarked to determine whether special access rates are ‘reasonable’ makes Don Quixote’s quest look like child’s play,” Free State Foundation President Randolph May said in a blog post Tuesday bemoaning the special access “debacle” (http://bit.ly/18Rla5C). The FCC is unlikely to ever gather all, or even most, of the requested data, May said, citing an NCTA petition seeking review of the data collection it said violates the Paperwork Reduction Act (http://bit.ly/18RlukP). Even assuming the special access market should be more competitive than it already is, any potential mandated rate reduction would “deter the development of further facilities-based competition,” May said. He also criticized the FCC’s decision to suspend and investigate AT&T’s special access tariff filing proposing to eliminate new long-term discounts (CD Dec 10 p1). “The FCC’s action was a mistake, and it leaves one wondering whether the agency has any appreciation at all of the way its actions can adversely affect the transition to all IP networks that enable less costly, more efficient services,” May said. “The Commission needs to reorient its pro-regulatory mindset in a meaningful way."
Verizon Wireless and T-Mobile agreed to a spectrum swap involving AWS-1 and PCS licenses. The FCC Wireless Bureau sought comment on the proposal Wednesday. The companies are set to exchange 5 to 20 MHz of PCS spectrum in 153 counties across 47 cellular market areas, the document states. In 11 counties in Texas, Verizon would assign 20 MHz of PCS spectrum to T-Mobile, and would receive 10 MHz of PCS spectrum in return. Verizon would also assign 5 to 10 MHz of PCS spectrum to T-Mobile in another 34 counties. “Preliminary review of the applications indicates that, post-transaction, Verizon Wireless would hold 67 to 149 megahertz of spectrum and T-Mobile would hold 30 to 100 megahertz of spectrum in the 518 counties covering parts or all of 133 Cellular Market Areas,” the bureau said (http://bit.ly/1bdMlHJ). Petitions to deny are due Jan. 6, oppositions Jan. 16, and replies Jan. 24. “There will be no loss of an existing service provider in any of the market areas subject to these transactions,” the companies explained in a public interest statement filed at the FCC. “The VZW Licensees are using some of their Exchange Licenses to provide service to customers. The VZW Licensees will continue to provide service on exchanged spectrum or other spectrum currently held by Cellco [a Verizon subsidiary]. Similarly, the T-Mobile Licensees are currently using some of their Exchange Licenses to provide service to customers. The T-Mobile Licensees will continue to provide service on exchanged spectrum or other spectrum currently held by the T-Mobile Licensees or their affiliates."
Gray Television agreed to buy KEVN-TV (Fox) Rapid City, S.D., from Mission TV for $7.75 million, Gray said in a news release Wednesday (http://bit.ly/1jiJxDj). The transaction also includes KEVN’s satellite station KIVV-TV Lead. KEVN is the No. 2-ranked TV station in the Rapid City market, and Gray’s first “stand-alone full-power Fox affiliate,” said the acquirer. Gray has recently announced deals to buy other stations in the region from Hoak Media: An ABC affiliate in Sioux Falls, S.D., and the NBC affiliates in Fargo and MinotBismarck, N.D. The KEVN deal needs regulatory approval and is expected to close in Q1 or Q2, said the acquirer.
The U.S. Court of Appeals for the Federal Circuit upheld an International Trade Commission determination that some Motorola Mobility smartphones are infringing patents held by Microsoft, in violation of Section 337 of the Tariff Act (http://1.usa.gov/1gGAUAq). The ITC findings had resulted in imposition of a limited exclusion order in June 2012 banning imports of certain Motorola smartphones. Customs and Border Protection ruled in April that a design-around by Motorola allowed entry of products formerly subject to the exclusion order, which provoked an ongoing lawsuit from Microsoft at the U.S. District Court in Washington. Motorola Mobility is “disappointed with this decision but pleased with the overall outcome,” said a spokesman for the company that’s now a unit of Google. “Microsoft lost on 8 of its ‘best’ patents, and this lone opinion does not impact our ability to build great products that people love.” The ITC had no comment on the Federal Circuit’s ruling, decided Monday. “Even after a closer look by the Federal Circuit, it’s clear Google is using patented technology Microsoft worked hard to invent,” said Microsoft Deputy General Counsel David Howard.
Iridium’s petition for reallocating Globalstar’s Big low-earth orbit spectrum will ensure sufficient spectrum to promote continued development and innovation in essential mobile satellite service (MSS), Iridium said in FCC RM-11685 (http://bit.ly/18z3Bwu). The petition is neither anticompetitive “nor would it hinder Globalstar in pursuing its MSS or TLPS business plans,” Iridium said of Globalstar’s proposed terrestrial low-power service. Iridium’s growth is expected to continue, “driven by the introduction of new products and services enabled by upgrades in Iridium’s constellation and its innovative vendor partnerships,” it said. As Iridium prepares for the launch of Iridium Next, its next-generation network, “it will be increasingly important to ensure that it has sufficient spectrum available to support this expansion as well as sustain its core business,” it said. “Iridium offers nothing new in its response and nothing supports its request to take almost 3 MHz of Globalstar’s L-band spectrum,” said Barbee Ponder, Globalstar general counsel.
Even after completion of the IP transition, the wholesale wireline provisions of the Communications Act will continue to be necessary and important, Comptel told an aide to FCC Chairman Tom Wheeler. Regardless of the technology used, “access to consumers is required” to ensure competition isn’t stifled, Comptel said. “It is not economically viable for competitors to replicate the ILEC network in its entirety,” the association of competitive providers said. “Competitors must supplement their reach” by “purchasing from large ILECs wholesale last mile access,” it said. The commission could speed the IP transition by “confirming that IP interconnection for voice services falls under Sections 251 and 252 of the Act,” Comptel said.
The Nebraska Public Service Commission asked the FCC for a permanent waiver of rules requiring it provide a copy of the Lifeline subscriber’s certification form to eligible telecom carriers (http://bit.ly/JIcKYL). Ongoing compliance will “result in a significant burden” for the state commission, and a delay in bringing Lifeline benefits to eligible subscribers, said the PSC in a petition Tuesday. “Special conditions” in Nebraska warrant the waiver, it said: The Nebraska PSC “oversees the application verification process, ensures that a compliant certification form is executed by each subscriber, then provides written notification to each affected ETC.” This “should be considered more than sufficient” to ensure compliance with Lifeline program requirements, it said.
The California Public Utilities Commission asked the FCC for an extension of time to implement a third-party identification verification process for its Lifeline program (http://bit.ly/JIdsVK). An extension to May 1 would help the PUC comply with an FCC requirement that the state implement the verification process, it said. The FCC had made the verification requirement a condition on the PUC’s being able to opt out of the National Lifeline Accountability Database, said the PUC’s Tuesday petition.
President Barack Obama nominated Elisabeth Cook to continue her membership on the Privacy and Civil Liberties Oversight Board. Cook is an attorney with Wilmer Hale and has sat on PCLOB since August 2012. Cook’s reappointment nomination, sent to the Senate Tuesday night, would place her on the board through Jan. 29, 2020. PCLOB, an independent body within the executive branch, has four part-time members and a full-time chairman and is investigating surveillance practices, with the intent to submit recommendations to Obama.