The President’s Council of Advisors on Science and Technology formed a working group focused on semiconductors, said group co-chairmen John Holdren, director of the Office of Science and Technology Policy, and Paul Otellini, a former head of Intel, in a White House blog post Monday. “Semiconductors are essential to many aspects of modern life, from cellphones and automobiles to medical diagnostics to reconnaissance satellites and weapon systems,” they said. “Additional public and private investments in R&D are almost certain to be required if the past remarkable pace of improvements in price and performance of semiconductors and the benefits deriving therefrom are to continue -- R&D that looks to create new technologies that can leapfrog beyond the limits of today’s technology and explore entirely new computer architectures and their integration into systems well beyond the traditional computing sphere, including automotive and other mobile applications.” The group “will identify the core challenges facing the semiconductor industry at home and abroad and identify major opportunities for sustaining U.S. leadership” and “deliver a set of recommendations on initial actions the Federal government, industry, and academia could pursue to maintain U.S. leadership in this crucial domain,” the co-chairs said.

ICANN said it paid CEO Göran Marby $314,881 during FY 2016, including $196,154 in salary. Marby was an adviser from early April through late May, when he officially took over as a permanent replacement to former ICANN CEO Fadi Chehadé. ICANN's payments to Marby included $104,642 for moving and travel-related expenses, the organization said in a report. ICANN said it paid Chehadé $845,503 during the fiscal year, including $417,174 in salary and $208,814 for “at-risk pay.” ICANN board Chairman Steve Crocker and other board members received a total of $1.9 million in payments from the organization, including a combined $1.2 million in reimbursements of expenses related to the board's six face-to-face meetings during FY 2016. Crocker received $212,230 from ICANN, including $75,000 in salary. All other ICANN board members receive $45,000 salary per year.

Midsize telcos disputed the FCC's proposed 11 percent rate cut for legacy business data services, with CenturyLink saying the reduction would be unjustified and bigger than the commission projected. "Because the proposal under consideration contemplates that above-tariff contract charges would be reduced to the tariff rates before the 11% reduction takes effect, the total cuts will necessarily be greater than 11% -- and perhaps significantly greater -- with serious consequences for ILECs’ ability to recover costs and continue to invest in rural broadband," said a CenturyLink filing Friday in docket 16-143. The commission's "record clearly establishes the presence of strong BDS competition" and the agency "not only ignores the evidence, but declines to conduct any analysis of the BDS geographic market at all," said a release Monday from the Invest in Broadband for America coalition citing the filing (the coalition includes CenturyLink, Cincinnati Bell, Consolidated Communications, FairPoint Communications and Frontier Communications). FCC Chairman Tom Wheeler is planning a Nov. 17 vote on a BDS item that would subject ILEC legacy DS1 and DS3 services (with data speeds under 45 Mbps) to price-cap rate regulation and cuts, while adopting a lighter-touch approach for packetized Ethernet services (see 1610270054). The "draft BDS proposal would unduly affect mid-size ILECs, like Frontier, in ways that would be deeply harmful to investment in American broadband connectivity and jobs," said a Frontier filing on a meeting with Office of Strategic Planning Chief Paul de Sa. The telco urged the commission to "carefully consider the current state of market competition in how it implements any reform to existing grants of Phase II pricing flexibility, noting the particularly competitive nature of the transport market." The proposed 11 percent reduction "should be pro-rated" for certain ILECs such as Consolidated that haven't been regulated under price caps "for the entire period of efficiency gains the downward adjustment purports to address," said a Consolidated filing on meetings with aides to Wheeler and Commissioner Jessica Rosenworcel, and with Wireline Bureau staffers. CenturyLink is buying Level 3 (see 1610310033).

Security researchers doing controlled research on consumer devices are temporarily exempt from the Digital Millennium Copyright Act as long as they don't violate the Computer Fraud and Abuse Act, starting Friday as authorized by the Librarian of Congress, wrote FTC Tech Policy Fellow Aaron Alva in a Friday blog post. Researchers previously couldn't investigate security vulnerabilities because DMCA makes it illegal to circumvent controls that prevent access to copyrighted material, he said. But the LOC has allowed exemptions from time to time for various technologies to take away any legal hurdle and protect conduct, he said. Alva said that in this case security researchers must act in good faith and meet a few requirements to be exempt, such as legally acquiring a device or software and doing research in a controlled setting to avoid harming the public. He said if the requirements are met then a researcher can test a connected toaster and gauge the risk from attack, but not steal a toaster, hack into it or set it on fire. "The exemption covers a broad array of consumer devices such as electric toothbrushes, home thermostats, connected appliances, cars, and smart TVs," as well as medical devices, he said, but it doesn't apply to "highly sensitive systems such as nuclear power plants and air traffic control systems."

The FCC gave guidance to Lifeline providers on implementing rolling recertification of users under an agency overhaul order approved in March (see 1603310056). "The Commission adopted rules to change the subscriber eligibility recertification process from once each calendar year to a rolling process based on each subscriber’s service initiation date," said a Wireline Bureau public notice in docket 11-42 listed in Friday's Daily Digest. The rolling recertification requirement is intended to improve administrative efficiency and reduce burdens on carriers, the Universal Service Administrative Co. (USAC), and a national Lifeline verifier to be set up, said the PN, but there had been various requests for clarification. The bureau said the "rolling recertification process for each subscriber must be completed, not merely begun, by 12 months following the subscriber’s service initiation date, and every 12 months thereafter," and the process wouldn't be considered complete until a carrier has de-enrolled all affected subscribers. "The Bureau also clarifies the time period in which carriers generally should attempt rolling recertification efforts," the PN said. "Consistent with the USAC administrative process, we strongly encourage carriers to begin recertification within 150 days prior to the subscriber’s anniversary date." Among other clarifications, the bureau said "the service initiation date is the date on which the subscriber began to receive Lifeline-supported service from the current ETC" (eligible telecom carrier).

CEO Mike Poth said FirstNet is making strides toward awarding a contract to build a national public-safety broadband network, but he indicated a decision won't be reached by a Nov. 1 target date. "We have made significant progress in the evaluation process and are moving closer to a contract award," he said in a blog post Thursday. Poth said FirstNet accomplished many tasks needed to award the contract ahead of schedule, including by issuing a request for proposals (RFP) in January, answering hundreds of questions about its content, and evaluating proposals. "From the outset, FirstNet set an aggressive schedule for the procurement knowing that the timing of the award would depend on many factors given its significance and complexity, some of which are outside our control," he wrote. "This is a highly complex acquisition that requires the input and support of multiple agencies and entities; it is critical that all parties are thorough and follow the necessary processes so that FirstNet gets this right for public safety. With all of this in mind, FirstNet will continue to execute the acquisition process outlined in the RFP beyond the November 1st target date for the award." A public-safety consultant recently suggested the award schedule could slip (see 1610140041).

The FCC's new ISP privacy rules more closely align to the FTC's approach than initially proposed, but the areas of departure still are a disservice, said USTelecom President Walter McCormick Thursday. Those departures include classifying all web browsing as sensitive information, he said: "The FCC’s argument that broadband providers have unique access to consumer information compared to other internet firms is simply wrong." He also said Chairman Tom Wheeler's push for a proceeding to consider a ban on mandatory arbitration clauses in service contracts "threatens to do a disservice to consumers who seek speedy resolutions to problems that may arise, and goes well beyond the agency’s statutory mandate." Information Technology Industry Council CEO Dean Garfield also was critical of the FCC's 3-2 vote Thursday to adopt the new rules (see 1610270036). The broadband privacy rules, if they match up with the FCC's summary, "will be problematic for the internet ecosystem at large," he said. And Telecommunications Industry Association CEO Scott Belcher said the privacy rules "place burdensome regulatory requirements on ISPs ... [creating] an uneven playing field" and disincentivizing investment. "Consumers will benefit the most if American companies are encouraged and supported as they seek to lead the world in making 5G and IoT innovations a reality," he said.

The FCC touted its efforts to reduce barriers to entrepreneurs and small businesses in the communications industry, in a report to Congress listed in Friday's Daily Digest. Communications Act Section 257 requires the FCC to report on such efforts every three years. Among the items the commission cited were its net neutrality order to safeguard Internet "edge" opportunities, "designated entity" rules to facilitate the ability of start-ups to acquire licensed spectrum, unlicensed spectrum and spectrum sharing for innovative uses, and amended joint sales agreement rules and other actions to assist small broadcasters. "We have created unprecedented opportunities for new and diverse media voices to find audiences," said the report. "We have promoted vigorous competition on a playing field that is fair for both large and small firms, and that is consequently attracting record amounts of venture capital at the edge and in networks." Chairman Tom Wheeler's statement said: "Our Open Internet Order protects entrepreneurs and small businesses free and open access to the Internet, enabling innovation without permission. At the same time, we forbear from sections of Title II like rate regulation and unbundling that might reduce network owners’ incentives to continue building out their networks and investing in new technologies like 5G." Commissioners Ajit Pai and Michael O'Rielly partially dissented. Pai agreed some actions had helped small businesses, but others, such as Title II reclassification "disproportionately burdens smaller broadband providers." O'Rielly said, "At best, only a portion of this report can be said to be responsive to the law. Even if the statute were read to suggest a broader application, Congress certainly did not expect that the report would be considered as just another opportunity to proselytize in favor of the current Commission’s partisan agenda." O'Rielly also called it "alarming" that the report is more than two years late, following the last one in 2011, and without explanation. "I cannot support this blatant indifference to Congressional requirements," he wrote. "Overall, this report is flawed and extremely late. I approve its issuance, as required under the law, approve instances where it actually acknowledges and addresses legitimate and applicable market entry barriers for small businesses, and reject the rest."

To illustrate cable industry actions to prevent robocalls, NCTA launched a website that includes links to Bright House Networks, Charter Communications, Comcast, Cox Communications and Time Warner Cable information about blocking such calls on the cable ISPs' telephone systems. NCTA said Charter, Comcast and Cox also are members of the FCC's Robocall Strike Force, which presented its initial report Wednesday to the commission (see 1610260053).

CenturyLink "is in advanced talks" to combine with Level 3, with a deal announcement possible "in the coming weeks," The Wall Street Journal reported Thursday. Both companies declined to comment to us on the report. "While we don't know if true, it looks like CTL [CenturyLink] would be the buyer," Wells Fargo analyst Jennifer Fritzsche wrote investors. "A LVLT [Level 3] merger or purchase could make sense for a telecom carrier looking to deepen its fiber presence both inside and outside of its network. CTL does not have wireless and it has a less robust fiber footprint than some of its peers. We believe CTL is motivated to be aggressive with its fiber push to keep up with the competition. The addition of LVLT helps it do this." The deal could create "significant cost synergies and revenue synergy opportunities," Fritzsche wrote, citing special access (business data services), since CenturyLink is a net seller and Level 3 a net payer of such services. She suggested CenturyLink would have to pay a "significant premium" to combine with Level 3, which could attract interest from others such as "cable and content" companies. BDS rules are tentatively set for a Nov. 17 FCC member vote (see 1610270054).