The U.S. still has a big role to play in international internet governance and the record shows that abrogating its responsibilities doesn’t work, FCC Commissioner Mike O’Rielly said in a Friday blog post. “Over the last several years, we’ve been lectured by many that the U.S. position on Internet governance was no longer sustainable in the larger, global community,” O’Rielly wrote. “So-called experts claimed that the U.S.’s minimal government involvement in Internet issues was no longer a prudent approach. These ‘experts’ added that if the U.S. just ceded on our sound principles a little bit, authoritarian governments of the world would end their continued effort to seek increased government regulation and control of the Internet. In other words, they sought an appeasement strategy.” The record shows that strategy won’t succeed, he said. In October, the U.S. officially terminated its last remaining contractual relationship with ICANN, he said. Six months later, “authoritarian governments continue to persist in their efforts to have multilateral organizations, such as the UN, regulate the Internet.” One case in point is a recent interview with Russian President Vladimir Putin wherein he said “the ICANN transition did not change its overall stance and Russia will continue to pursue government involvement, perhaps through the U.N.’s International Telecommunication Union, in the workings of the Internet,” O’Rielly said. He pointed to discussions at the ITU’s World Telecommunication Standardization Assembly in Tunisia in October. “Member States specifically discussed such topics as the Internet of Things, cybersecurity, privacy, and the possible regulation of Internet companies and applications,” he said. “Specifically, the ITU Member States embarked on a discussion of the standards needed to facilitate such regulation and deployment.” In March came a position paper from China, “International Strategy of Cooperation on Cyberspace,” China’s “plan to seek global, multilateral governance of the Internet,” he said.

Commissioner Clyburn didn’t say Thursday whether she will remain at the FCC after her term expires in June, though she was asked during a news conference if she had informed anyone of her plans. Clyburn said she believes the FCC needs a voice for consumers, and said she had an important job to do at the commission as “a steward” for consumers, even singing a few lines from the Isley Brothers song “Work to Do.” But she also said she would perform such work no matter her ”title,” leaving her plans unclear. There's some industry concern that Clyburn could depart in June, leaving the commission without a quorum (see 1704140061).

Microsoft President Brad Smith spoke with FCC Chairman Ajit Pai by phone on the importance to the company of unlicensed spectrum in the TV white spaces. The FCC should designate at least three channels in each market for Wi-Fi and other unlicensed use, Smith said, according to a Tuesday filing in 15-146. “Microsoft along with its broadband and other partners are using TV white spaces to bring high-speed internet access into the homes of previously unconnected students in rural Southern Virginia,” the filing said. “This single project will serve 7,500 primary and secondary school students when the system is fully deployed." Smith also expressed Microsoft’s general support for “enforceable net neutrality rules,” the filing said.

The FTC extended the comment period on privacy and security issues for automated connected cars to May 1, said the commission in a Wednesday news release. The comments will be examined at a webcast June 28 workshop at 400 7th St. SW that's being co-hosted by the National Highway Traffic Safety Administration. No agenda has been listed for the workshop but the agencies are seeking answers to several questions, including what data vehicles with wireless interfaces collect, store and transmit, how data is used and shared, how consumers will benefit and what are the roles of automakers, parts suppliers, tech companies and others in collecting data and ensuring security.

A court sent Lifeline broadband provider rules back to the FCC for further proceedings. The U.S. Court of Appeals for the D.C. Circuit Wednesday issued a brief order (in Pacer) granting the agency's unopposed remand motion in NARUC v. FCC, No. 16-1170. NARUC says the FCC's process for designating Lifeline broadband providers bypasses state authority under the Communications Act. FCC Chairman Ajit Pai said he plans to scrap the process (see 1703290025), drawing criticism from Lifeline advocates and support from others (see 1703290054).

Individuals and companies in the telecom and media industries sent big dollars to help President Donald Trump's inauguration effort, according to a form recently filed with the Federal Election Commission, dated Tuesday. Liberty Interactive Chairman John Malone, who has a stake in Charter Communications, gave $250,000 personally, and Liberty donated the same amount separately. AT&T gave $1 million in multiple instances, for a total gift of more than $2.08 million. Qualcomm gave $1 million. Intel and Microsoft donated $500,000 each, Google $285,000, Comcast and Charter $250,000 each, Verizon $100,000 and Amazon more than $57,000. Trump ally Peter Thiel, a tech industry official involved in the campaign and presidential transition, gave $225,000.

New America’s Open Technology Institute was pleased Nick Degani, aide to FCC Chairman Ajit Pai, met with public interest groups about privacy, but questions remain, OTI Policy Counsel Eric Null told us Wednesday. Null was at the meeting (see 1704180033). “There is much uncertainty and confusion over how broadband privacy will be protected going forward, and we hope the chairman heard our arguments and will provide commission-level guidance to alleviate at least some of that uncertainty,” he said.

Verizon's "most logical" acquisition target is Charter Communications despite the telco's comments citing others as possible strategic partners, said Bank of America analysts. In a CNBC interview, Verizon (VZ) CEO Lowell McAdam invited Comcast, Disney and CBS to "knock on the door" or "call" for talks, the analysts said in a note this week to investors. "While naming names for potential strategic deals is striking in general, the list itself is particularly surprising in our view because of its inclusion of major content players," the analysts wrote, noting McAdam omitted to name companies speculated to be talking with Verizon, including Charter, Dish and Zayo. "As a result, we believe these comments might be viewed as public negotiating with preferred major partners by opening the door to alternatives." They cited McAdam's previous flat denial that Verizon would buy CBS, and his comment Tuesday that "it doesn't make sense to go off strategy" even in a more accommodating regulatory environment. "There are cogent strategic arguments" for Verizon to acquire Charter, they wrote, including: (1) high-speed network footprint expansion that speeds market moves and reduces costs for deploying 5G mobile, (2) content "synergies," (3) diversification into a "faster growth business" and (4) disruption of any cable combination plans to pursue a facilities-based mobile play. "Key potential challenges include sheer cost of a deal, including EPS [earnings per share] dilution and a leverage bump, and the need to divest a large base of overlapping cable/VZ assets including NYC," they said.

The cable industry "remains open to enforceable and reasonable open Internet protections but stressed its continued opposition to the regulation of broadband Internet access service under Title II of the Communications Act," said an NCTA filing posted Wednesday in docket 14-28 on a meeting its president, Michael Powell, had with FCC Chairman Ajit Pai and an aide. "Mr. Powell noted that broadband ISPs have provided consumers with a free and open Internet for the past two decades and that, until 2015, broadband had been classified as a Title I 'information service' by Democratic and Republican Administrations alike. Mr. Powell explained that Title I’s light regulatory touch had been critical to broadband ISPs’ ability to innovate, attract capital and make the massive investments necessary to constantly expand the reach and capabilities of their networks."

FCC Chairman Ajit Pai slammed Universal Service Administrative Co. E-rate oversight and urged improvements in the USF school and library discount program, which he said still has "serious flaws," despite previous remedy efforts. Pai said USAC's online E-rate Productivity Center (EPC) portal to process applications "is still not adequately functional," forcing critical steps to be carried out over a legacy IT system. "EPC implementation issues have created major headaches for applicants," many of whom "are still waiting for funding commitment decision letters for funding year 2016," he said in a letter to USAC CEO Chris Henderson listed in Wednesday's Daily Digest. "USAC has failed to fulfill specific commitments made to applicants even as it rolled out EPC system upgrades. USAC has frequently failed to devise solutions for applicants, instead requiring extensive FCC involvement, including from my office, to resolve problems." He also said $30 million has been spent on EPC despite an original estimate of $19 million, and the total cost could spike to "$60 million or greater." Telcos complained last year about EPC functionality (see 1607200074). Pai said USAC's "lack of full transparency" is compounding the various problems. "The current state of affairs is unacceptable. I seek your unqualified commitment that USAC will administer the E-Rate program in a manner that fully complies with Commission direction; works for applicants and participants; and promptly apprises the FCC of all relevant information concerning implementation," he wrote Henderson. Pai urged USAC to "swiftly resolve issues that continue to plague the system," with a focus on supporting and completing "basic EPC functionality" before addressing "ancillary" issues; to "be fully transparent and accountable to the Commission"; and "to identify alternative options to assist applicants" when IT failures occur, including through manual efforts by USAC or a contractor, if necessary. He asked USAC to devise a plan of action by May 18. USAC didn't comment.