Commerce Secretary Penny Pritzker's "exit memo" outlined accomplishments on cybersecurity, an open internet and trade during the Obama administration, but warned the government "is currently not properly organized to face the challenges posed by the 21st century digital economy." She said the government should focus on five issues: access, cybersecurity, free internet, emerging technologies and workforce issues. Policies and incentives are needed to encourage investment in broadband access. Pritzker said a there's a "growing global cybersecurity crisis" at the hands of criminals and nation-states and the incoming administration should work to promote strong cybersecurity policies, baseline privacy rules and use of encryption as well as government access to data. The President's Commission on Enhancing National Cybersecurity (see 1612020050) recently delivered recommendations to improve cyber defenses and raise cyber awareness. Pritzker said trade agreements and other policies to "protect cross-border data flows, discourage digital protectionism, and ensure open digital markets" should be pursued. She underscored transfer of the Internet Assigned Numbers Authority functions to a multistakeholder, nongovernment group (see 1610030042), completion of the EU-U.S. Privacy Shield to ensure that the transfer of Europeans' personal data is protected (see 1602020040), and creation of the Digital Economy Board of Advisors (see 1612150069) and digital trade attaches program (see 1612120018). Artificial intelligence, autonomous vehicles and IoT are some emerging technologies that should be encouraged and the department should be an "evangelist" to break down barriers to innovation, she said.

FTC Commissioner Terrell McSweeny and FCC Commissioner Mignon Clyburn said it would harm consumers and innovators if the communications regulator's net neutrality order is rolled back, as Republicans promised. "Ensuring that the internet remains a fountain of innovation and disruption is at the heart of open internet policy," they said in a joint commentary on recode. "The elimination of clear rules protecting a free and open internet would put us in uncharted territory and would create uncertainty for ISPs, edge providers and consumers alike." They also defended related FCC broadband privacy rules, which they suggested complemented FTC privacy rules, though they also endorsed further efforts by both commissions to collaborate and by Congress to pass legislation on privacy. FTC Chairwoman Edith Ramirez also defended the FCC's privacy rules (see 1701050066).

It's “essential” for all TV licensees to ensure their correct contact information is on file with the FCC, said the Media Bureau and the Incentive Auction Task Force in a reminder public notice Thursday. “Important communications may reach recipients more quickly if their contact information is a street address rather than a post office box.” Information about channel assignments and repacking information will be sent by overnight mail to licensees with street addresses on file, the PN said. Contact information can be updated in the licensing and management system, the PN said. In a separate PN, the Consumer and Governmental Affairs Bureau's Office of Native Affairs and Policy announced two upcoming “FCC Tribal Broadband, Telecom, and Broadcast Training and Consultation Workshops.” The first workshop will be at Black Oak Casino Resort, Tuolumne, California, Jan. 31 to Feb. 2, and the second at Seneca Allegany Resort & Casino, Salamanca, New York, March 7 to 9. The workshops will include sessions “on a broad range of FCC programs and policies that impact communications issues in Tribal communities,” the PN said.

Current FCC landlord Parcel 49C “has simply not shown” that General Services Administration award of the bid for the commission's new headquarters to developer Trammell Crow was based on conflicts of interest, said the U.S. Court of Federal Claims opinion (in Pacer) rejecting Parcel 49C's bid protest. Though the opinion was handed down Nov. 30 (see 1612050046), it was only unsealed and published this week. “The GSA conducted a reasonable evaluation process for the RLP [request for lease proposals] at issue in this litigation,” said the opinion, which also rejected Parcel 49C's request for an injunction that would bar the award from going forward pending an appeal. “Given the many weaknesses in Parcel 49C’s challenges to the GSA’s evaluation process, Parcel 49C has also not demonstrated that it is entitled to the injunctive relief that it seeks in this case,” said the opinion. Parcel 49C argued against numerous aspects of the GSA's award process, including the way the GSA calculated the cost of the FCC's moving versus staying at the current Portals location, that the company judging the bids -- CBRE -- owns eventual winner Trammell Crow, and the FCC's requests for a location with backup power sources and an 11-foot ceiling on the first floor. “Parcel 49C has simply not shown that the GSA’s actions here were arbitrary, capricious, an abuse of discretion, or not in accordance with the RLP or applicable law.” The regulator's lease expires in October.

Frontier Communications agreed to discontinue various advertising claims about its DSL and Fios broadband services that were challenged by Charter Communications before the National Advertising Division, said a release Wednesday from the Advertising Self-Regulatory Council. NAD, the investigative unit of the ad industry’s self-regulation system, recommended Frontier stop making certain performance claims in print and internet advertising, ASRC said. It said Frontier agreed to discontinue the many challenged claims, including: "Connect all your devices with blazing-fast speed"; "Frontier Internet is enough to handle all you do online. ... You name it online, you can do it with Frontier"; and "Every tier of Frontier DSL is able to stream SD and HD movies without buffering." NAD also reviewed modified advertising and recommended Frontier discontinue claims that its high-speed internet service will do "practically anything you and your family needs," and that customers need "never worry about" such internet connections, the release said. NAD further recommended Frontier discontinue claims its Fios network and service are superior to cable internet architecture and service, and refrain from comparing their performance. "Frontier, in its advertiser’s statement, said the company has 'reviewed its advertising and has implemented NAD’s recommendations. Frontier will also take NAD’s recommendations into consideration for future advertising,'" ASRC said. Frontier and Charter didn't comment to us. The Council of Better Business Bureaus administers NAD.

The reverse portion of Stage 4 of the incentive auction is expected to end Jan. 13, the Incentive Auction Task Forcesaid on the auction Public Reporting System Wednesday. The reverse auction will proceed with three rounds a day until Monday, and then go to four rounds a day, the PRS said. That schedule would cause the nominal final round, round 52, to fall on Jan. 13, but if two additional rounds are needed, the schedule will go to five rounds on Jan. 13 to end the auction on that day. “It is possible for the auction to take up to two additional bidding rounds beyond the point at which the base clock price has reached $0 if the final bidding status has not yet been determined for any VHF stations,” the IATF said.

Cable, wireless and other parties asked the FCC to reconsider privacy rules targeting broadband ISPs, joining local telcos, advertising groups and Oracle which had also filed petitions in docket 16-106 (see 1701030051 and 1612220017). NCTA said the FCC should withdraw the "unsustainable" regulations approved by Democratic commissioners because they exceed the agency's authority, arbitrarily and capriciously depart from the FTC's "long-standing and effective privacy framework" covering all Internet players, infringe on ISP free speech, and create "unworkable and conflicting" data security requirements that will cause "overnotification to law enforcement and consumers of putative data breaches." The order "compounds the errors" from the FCC's "ill-advised decision to reclassify" broadband under Title II of the Communications Act, NCTA said. The American Cable Association said the order "goes off the rails because it makes material errors on the law, facts, and policy." The "train wreck" can't be salvaged and the rules should be eliminated, and, if necessary, replaced with a framework grounded in the FTC's "time-tested" regime, the ACA said. CTIA said the rules undermine the FCC's stated goals and should be vacated, modified or clarified. The agency should at least take certain steps, including to "limit the scope of information to which the Rules apply to customer proprietary network information (CPNI)," reconsider limits on ISP use of financial incentives in exchange for customer information, and narrow data-breach notifications, it said. The Competitive Carriers Association said the FCC regime "will undercut" internet competition by saddling ISPs "with unparalleled, restrictive data use and sharing rules without the benefits of actually protecting consumers" and without giving small providers "appropriate relief." The Wireless Internet Service Providers Association said the agency lacked legal authority and impermissibly combined the definition of CPNI with "personally identifiable information" and "content of communications" to create a broad new "customer proprietary information" category. If the commission determines it has authority, WISPA urged the agency to account for ISP/edge "asymmetry" that "its rules exacerbate" and provide further relief to small providers. CTA credited the FCC with improving its initial proposal but said its rules still fail "to ensure a coherent and consistent approach." Level 3 said the exemption for serving enterprise voice customers wasn't broad enough to account for differences with broadband access providers, and should be changed.

The FCC incentive auction Public Reporting System and its Electronic Comment Filing System experienced outages Wednesday that prevented users from accessing the auction bidding system or reading documents filed with the commission. Though ECFS' difficulties persisted into late afternoon according to several users of the system, the problems with PRS were cleared up less than 15 minutes after the Incentive Auction Task Force announced them, according to time-stamped announcements on the PRS system that have since been removed. The PRS announcement blamed the issue on internet connectivity problems. An FCC spokesman told us the problem affected about 80 documents, and was resolved by Wednesday afternoon, though it could take more time to provide access to the documents. The FCC said it is exploring the cause of the internet outage with its vendors. The spokesman said the issues are believed to be unrelated.

FCC Commissioner Ajit Pai’s frequent use of Twitter (see 1612280041) gives him a strong channel for communication if he becomes chairman, said James Toscano, a social media expert at Dots Matter. "Pai's current social media habits contribute to him being a 'high influencer' on the medium,” Toscano emailed. “Becoming chair will only enhance his stature there.” As leaders grow in responsibility, they should also develop a deeper sense of responsibility for their social media use and the policy ramifications of what they say, Toscano said. But as President-elect Donald Trump has shown, “a leader's authenticity on Twitter attracts followers, and speed of message delivery via Twitter allows leaders to interrupt -- and even own -- the news cycle,” Toscano said. “This poses major advantages in harnessing public influence for leaders, like Pai, who are willing to be a bit more spontaneous."

Calendar correction: The date of a 2 p.m. EST NATOA webinar on the election's impact on local governments is Jan. 9 (see http://www.communicationsdaily.com/calendar).