Court Rejects Ajit Pai's Bid To Reduce Broadband Subsidies For Tribal Areas

from the unnecessary-fisticuffs dept

Tue, Aug 14th 2018 12:00pm — Karl Bode

For a while now we've been noting that while Ajit Pai professes to be a huge proponent of "closing the digital divide," most of his policies are doing the exact opposite. Pai's attacks on net neutrality, for example, will likely only act to drive up broadband prices for everyone as ISPs enjoy their newfound ability to creatively abusive captive customers in uncompetitive markets. And Pai has repeatedly attempted to fiddle with FCC data collection methodology with an eye toward obfuscating the industry's competitive failures (be that skyrocketing prices or poor coverage).

That's of course when he hasn't been busy slowly-but-surely gutting programs designed to help bring broadband to the nation's less affluent areas.

One of Pai's core policies has been a relentless attack on the FCC's Lifeline program. Lifeline was created under the Reagan administration and expanded under the George W. Bush administration, and provides low-income households with a measly $9.25 per month subsidy that low-income homes can use to help pay a tiny fraction of their wireless, phone, or broadband bills (enrolled participants have to chose one). The FCC under former FCC boss Tom Wheeler had voted to expand the service to cover broadband connections, something Pai (ever a champion to the poor) voted down.

Traditionally this program had broad, bipartisan support and was never deemed even remotely controversial. But ever since Trump and Pai stumbled into town, the current FCC has slowly waged war on the program. For example Pai's FCC voted 3-2 last November to eliminate a $25 additional Lifeline subsidy for low-income native populations on tribal land. Pai's FCC also banned smaller mobile carriers from participating in the Lifeline program, a move opposed by even the larger companies (Verizon, AT&T) Pai's FCC normally nuzzles up to.

But Pai's quest backfired late last week when a U.S. Appeals court issued a stay order (pdf) freezing Pai's efforts to kill Tribal broadband subsidies, the court arguing that Tribal organizations and smaller wireless carriers are likely to win their court challenge against the recent FCC changes.

Small wireless carriers and several tribal organizations had sued the FCC (pdf) in the United States Court of Appeals for the DC Circuit, noting the FCC "failed to engage affected tribal governments" ahead of the rule changes. Tribal leaders also filed a petition (pdf) claiming Pai's multi-pronged attack on Lifeline would only make it harder to connect tribal lands to the internet.

So far the courts seem to be agreeing with them, and tribal groups have been quick to applaud the ruling:

"Residents of Tribal lands, like many low-income consumers, rely on Lifeline service from wireless resellers, who are the primary, and sometimes only, providers of Lifeline service,” Gene DeJordy, an attorney for the Crow Creek Sioux Tribe in South Dakota, said in a statement. “The victory today is for the people -- Tribal members who cannot afford many of the basic necessities of life and rely on Lifeline service for their telephone and broadband needs."

Pai had taken aim at the program's use in tribal areas under purely ideological grounds (ie: government can never do good and should be gutted from all oversight of natural monopolies), insisting his agency was purely concerned about potential fraud in the program. But the court stated that it had "identified no evidence of fraud or misuse of funds in the aspects of the program at issue here." As we saw with net neutrality, Pai likes to bend reality to fit his ideological agenda (aka sophistry), instead of letting facts inform policy.

Also like net neutrality, it's yet another example of how Ajit Pai's self-professed dedication to "closing the digital divide" looks suspiciously like a giant middle finger aimed at the communities he professes to be "helping."

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Filed Under: ajit pai, broadband, competition, fcc, rural broadband, subsidies

37 Comments

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Natt Chural, 14 Aug 2018 @ 12:06pm

You're careful to specify "natural monopolies"...

(ie: government can never do good and should be gutted from all oversight of natural monopolies)

Because that allows you to rule out mega-corporations having so large market share and control as to be de facto monopolies, like, say, GOOGLE.

Nice "nuance", minion.
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Anonymous Coward, 14 Aug 2018 @ 12:12pm

Meanwhile, the dept of the interior is prob busy making their access internet only.
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Anonymous Coward, 14 Aug 2018 @ 12:20pm

Upcoming Thursday: FCC Oversight Hearing
On Thursday, August 16, 2018, at 10am EDT, the United States Senate Committee on Commerce, Science, and Transportation will hold a full committee hearing, on “Oversight of the Federal Communications Commission (FCC)”.

U.S. Sen. John Thune (R-S.D.), chairman of the Senate Committee on Commerce, Science, and Transportation, will convene a hearing titled “Oversight of the Federal Communications Commission (FCC),” at 10:00 a.m. on Thursday, August 16, 2018. As part of the committee’s oversight responsibilities, this hearing will examine policy issues before the Commission and review the FCC’s ongoing duties and activities.

Live video of this full committee hearing is expected to be webcast from both the Senate website and from C-SPAN. Live cable TV coverage is scheduled on C-SPAN 1.
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Stephen T. Stone (profile), 14 Aug 2018 @ 12:25pm

You seem upset. Have you ever tried ASMR therapy?
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Anonymous Anonymous Coward (profile), 14 Aug 2018 @ 12:43pm

Re: Upcoming Thursday: FCC Oversight Hearing
Hmm. Sounds like a plan. Keep Ajit Pai in front of Congressional hearings full time. Think how little additional damage he could do if he spends all of his time before Congress?
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Ninja (profile), 14 Aug 2018 @ 12:46pm

Re: You're careful to specify "natural monopolies"...
Google is not a natural monopoly. You can go without it. Infrastructure like water, energy, telecom networks are since you have both financial and physical limits to deployment.
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Anonymous Coward, 14 Aug 2018 @ 1:02pm

You know dumb as chip was
He at least had a consistent internal monologue.
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Anonymous Coward, 14 Aug 2018 @ 1:04pm

Re: Re: You're careful to specify "natural monopolies"...

You can go without it.

Irrespective of your assertion about Google, please don't confuse monopoly with essential facility.

The well-known “case of the monopolies”, Darcy v Allein (QB 1602), concerned a monopoly on the import and vending of playing cards in England. Playing cards aren't an essential facility. Playing cards are a frivolous pastime. It was still an inconvenient monopoly.
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ryuugami, 14 Aug 2018 @ 1:10pm

Re: Re: Re: You're careful to specify "natural monopolies"...
Irrespective of your assertion about playing cards, please don't confuse essential facility with natural monopoly.
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Madd the Sane (profile), 14 Aug 2018 @ 1:16pm

Questions to ask the FCC
Call your senators, ask them to be there, and have them ask questions that are about proof. I've called my senators and have asked them to ask the following questions to the FCC:
1. What is the FCC doing about identity theft and fraud on the comments section?
2. How is the FCC closing the digital divide?
3. How did the 2015 Net Neutrality rules hurt investment of the major ISPs?
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Anonymous Coward, 14 Aug 2018 @ 1:17pm

Re: Re: Re: Re: You're careful to specify &quot;natural monopolies&quot;...

… please don't confuse essential facility with natural monopoly.

Concerning your assertion about confusion, please distinguish ‘essential facility’ from ‘bottleneck facility’.
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Anonymous Coward, 14 Aug 2018 @ 1:57pm

Re: You're careful to specify "natural monopolies"...
How would government exclusion from natural monopoly oversight prevent mega corp domination of a market?

What nuance did said minion attempt?

Perhaps this is a private convo about some personal stuff - idk.
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Ninja (profile), 14 Aug 2018 @ 2:27pm

Re: Re: Re: You're careful to specify "natural monopolies"...
Google is also not essential in any way.
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Anonymous Coward, 14 Aug 2018 @ 2:40pm

Re: Re: Re: Re: You're careful to specify "natural monopolies"...

… also…

The gist of your previous premise was, “You can go without it.” Iow, in this latest comment you essentially just repeated your original premise.

But the quibble with your reasoning is that the premise simply has no bearing on whether or not a monopoly exists. That is to say, your premise doesn't support your conclusion.

Which, to me, indicates some kind of fault in your reasoning. It appears likely that you may be having some trouble with the concepts or perhaps the language.
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James Burkhardt (profile), 14 Aug 2018 @ 2:47pm

Re: Questions to ask the FCC
4) Has the FCC provided evidence of the harms caused by the 2015 order to the SEC to aide investigation of securities fraud related to statements to investors that the Net neutrality order did not affect investment? If not, why has the FCC turned a deaf ear to statements by ISPs to investors?
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That Anonymous Coward (profile), 14 Aug 2018 @ 3:00pm

'Merica screwing Indian Tribes over since the 1800's
But we gave them casinos & tobacco sales!!!
And you setup towns that exist only to get them drunk.
But we tried to use them to protect our drug monopolies!!!

We've broken every treaty, every promise... Pai is just living up the the American way, take from the least so someday the corporations might decide to service them (HAHAHAAHAHAHAHAHA).
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Anonymous Coward, 14 Aug 2018 @ 3:11pm

Re: You're careful to specify "natural monopolies"...
How is Google a monopoly when there are other search engines you could use.
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Anonymous Anonymous Coward (profile), 14 Aug 2018 @ 3:21pm

Re: Re: Re: Re: Re: You're careful to specify "natural monopolies"...
You be the fool. There is very little that Google does that is not available elsewhere. Therefore it is both not necessary, nor is it a monopoly. So you are wrong on both counts, and Ninja is right on both counts.

So far as language, Ninja has been around here a lot longer than you and he deals with English better than many native English speakers.

Given your propensity for childish argument, you might want to grow up before you try again. See you in 20 or 30 years.
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Anonymous Coward, 14 Aug 2018 @ 4:00pm

Re: Re: You're careful to specify "natural monopolies"...
By being the only one worth using. IE they out-competed everyone else to such a degree, they are close to becoming a generic term. Kleenex and Xerox are other examples that are not monopolies but are household names and often the first one that comes to mind when needed.

Around here, by the way, trolls like you are thought of in much the same way, only not in a good light.
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TecnologíaTop, 14 Aug 2018 @ 4:01pm

¿It will be only for tribal Areas?

I had never tried it.
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Anonymous Anonymous Coward (profile), 14 Aug 2018 @ 4:08pm

Re: Re: Re: You're careful to specify "natural monopolies"...
https://duckduckgo.com/ works for me, so Google is not the only viable search engine out there.

Oh, and they state:

1. We don't store your personal info.

2. We don't follow you around with ads.

3. We don't track you. Ever.

Now I have not tested this, nor have I had any reason to.

Is it better than Google or any other search engine? I wouldn't know, I haven't even tried testing them. I find what I am looking for and don't worry about the rest.
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Iggy, 14 Aug 2018 @ 5:45pm

Why attack a subsidy for the poor?

The subsidy increases demand for internet access and allows ISPs to charge more money.

So far, Ajit Pai has acted completely as an agent of Verizon. Whats his motivation here?
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Anonymous Coward, 14 Aug 2018 @ 8:49pm

Re: Re: Re: You're careful to specify "natural monopolies"...
That doesn't really prove the point, does it? Most people looking for kleenexes don't care whether they're made by the Kleenex Corporation or whatever it's called, and someone looking for a xerox machine will likely be satisfied by whatever xerographic copier they're presented with. "Only one worth using?" What generic trademark works like that? Certainly the given examples both have robust competition.
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That One Guy (profile), 14 Aug 2018 @ 11:38pm

'They said it didn't. You say it did. One of you is lying.'
It would be glorious were one or more senators to bring the actual statements the companies made about how the 2015 rules had no impact on them and grilled Pai as to how those statements squared with his claims that they'd caused significant damage to investment.

No changing the subject, no weaseling out, demand that he provide the evidence his multiple and repeated claims of damage were based upon, and how it differed so much from the investors'.
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Anonymous Coward, 15 Aug 2018 @ 12:39am

Overload
An Indian American attacking the interests of American Indians? My irony meter just exploded.
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Anonymous Coward, 15 Aug 2018 @ 1:22am

Re: Overload
As we saw with net neutrality, Pai likes to bend reality to fit his ideological agenda (aka sophistry), instead of letting facts inform policy.

I think Techdirt invented sophistry, and is incredibly creative and long winded in defending it.

Just watch. Censorship and sophistry. Tools of the Techdirt trade.
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Anonymous Coward, 15 Aug 2018 @ 4:10am

You’re not the only one with a word of the day calendar...
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Anonymous Coward, 15 Aug 2018 @ 4:28am

Re: Re: Overload
"Censorship and sophistry. Tools of the Techdirt trade."

You obviously have no idea what either word means, you sophist.
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Iggy, 15 Aug 2018 @ 5:43am

Re: Overload
Not to mention the fact that India itself just passed comprehensive net neutrality legislation.
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Ninja (profile), 15 Aug 2018 @ 5:56am

Re: Re: Re: Re: Re: You're careful to specify "natural monopolies"...
And you repeated the wrong argument then. One service can be essential but you can still go without a determined company. Some Google services may be essential but not everything so I don't classify Google itself as essential. And you can go without Google even if you consider the essential services because they can be found elsewhere very easily. A monopoly is only a monopoly if there aren't alternatives. Google is not a monopoly. It offers awesome products and quality which is why it holds the bigger slice of the market but it's hardly a monopoly.
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Ninja (profile), 15 Aug 2018 @ 6:22am

Re: Re: Re: Re: You're careful to specify "natural monopolies"...
I think they use Google results while preventing data tracking from Google. I'm not sure where I read this so it might be false.
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ShadowNinja (profile), 15 Aug 2018 @ 8:49am

He probably wanted to get rid of it because someone told him the program was called "Obama Phones".

This is literally why conservatives on social media turned against it a few years ago and started making a fuss about the program. Because of a Youtube video of a poor person who used the subsidy for their cell phone calling it an 'Obama Phone', even though Reagan started the program.
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Thad (profile), 15 Aug 2018 @ 10:09am

Re:
Because he's the sort of politician who believes that government spending is always bad.
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Anonymous Coward, 15 Aug 2018 @ 10:23am

Re: Re: Re: Re: Re: You're careful to specify &quot;natural monopolies&quot;...
Irrespective of your distinction between "essential facility" from "bottleneck facility", please don't confuse how things work in America to how things work in the UK.
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Anonymous Coward, 15 Aug 2018 @ 10:30am

Re: Re: Re: You're careful to specify "natural monopolies"...

By being the only one worth using.

Sorry pal, that doesn't qualify something as being a monopoly. The only way something is a monopoly is if it's the only game in town. Google is far from the only game in town for any of their services or offerings. And some would argue that their competitors do it better they do. Android vs iPhone and Google+ vs Facebook are just two that come to mind immediately.

Kleenex and Xerox are other examples that are not monopolies but are household names and often the first one that comes to mind when needed.

That just means that the term is the first to come to mind. If you go looking for tissues, you'll find a lot more brands than just Kleenex on the shelves.

trolls like you

I'm sorry, I think you're confused. I believe you are the troll here, not the other way around.
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Anonymous Coward, 15 Aug 2018 @ 10:34am

Re: Re: Overload

I think Techdirt invented sophistry

What?! I had no idea Techdirt was so famous! To think Techdirt first started in 14th century France and has been around for hundreds of years. Now that's staying power.

Here's hoping they'll be around for another few hundred years.

P.S. Congratulations Mike Masnick on your 700th birthday!
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Toom1275 (profile), 16 Aug 2018 @ 6:14am

Re: 'They said it didn't. You say it did. One of you is lying.'
Such as when he tried to counter the coalition of dozens of small ISPs in favor of NN, Pai whipped up... five... that he claimed had their network deployment ability harmed, yet every single one of those five small ISPs greatly expanded their services.
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