March 14, 2017

Chris Hooton : The Internet Economy

Dr. Christopher Hooton () is the Chief Economist at the Internet Association, which represents the interests of the world's leading Internet companies in the advancement of public policy solutions to strengthen and protect Internet freedom,...

Dr. Christopher Hooton (@Hooton_Chris) is the Chief Economist at the Internet Association, which represents the interests of the world's leading Internet companies in the advancement of public policy solutions to strengthen and protect Internet freedom, foster innovation and economic growth, and empower users.  He is an economist and policy expert specializing in economic development, urban economics, spatial analysis, and evaluation. He has served as a consultant to the World Bank, the Inter-American Development Bank as well as other leading international organizations and was formerly a Lecturer at the Social Science Research Methods Centre University of Cambridge. His work has been featured in several international news organizations including the Financial Times, Reuters, the Financial Post, the Huffington Post, and more. 

Chris is a graduate of University of Miami, earned a Masters degree from the London School of Economics, and received a PhD in economic development from the University of Cambridge.


In this episode, we discussed:

  • the size of the internet economy in the U.S. and abroad. 
  • how various sub-sectors, industries and activities might be more accurately classified under the North American Industrial Classification System (NAICS) to more accurately reflect the influence of the internet.


Refreshing Our Understanding of the Internet Economy by Christopher Hooton (Internet Association, 2017)

Observance by Christopher Hooton (2017)

News Roundup

Wikileaks last weak released a trove of CIA documents in what the New York Times said appears to be the largest C.I.A. document leak in the agency's history. The hack revealed information regarding the C.I.A.'s ability to hack into things like Smart TVs, and even Apple iPhones, which are widely considered the gold standard of device encryption. The leak also revealed that the agency has the ability to read messages sent via encrypted messaging apps, such as Signal, Telegram and WhatsApp, simply by intercepting them before they are encrypted.

The leaks did not reveal information on what the C.I.A. is doing to conduct surveillance of other nations. Check out full coverage in The New York Times.


Facebook has announced that it will no longer allow anyone to access its data, including the police, for the purpose of surveillance. However, the company will continue to allow the police to use the platform and assisting law enforcement on a case-by-case basis. But some advocates say the changes don't go far enough.  Elizabeth Dwoskin has the story in the Washington Post.


Trump revised his ban on immigrants from majority-Muslim countries last week. The revised version exempts permanent U.S. residents, dual nationals and those already living in the U.S. as refugees or who have been granted asylum. The revised measure was met with condemnation from the tech sector, by Uber, Lyft and Airbnb. Nick Statt has the story in The Verge.


The Securities and Exchange Commission has denied an application for what would have been an exchange for the digital currency Bitcoin. The Commission found that the coin is not sufficiently regulated around the world to justify setting up the exchange, which was to be called Bitcoin Trust. Dave Michaels and Paul Vigna have the story in the Wall Street Journal.


The FCC is also investigating a 911 outage that prevented AT&T customers from dialing 911. AT&T did not indicate how widespread the outage was. Harper Neidig has the story in the Hill.


A new report written by the National Digital Inclusion Alliance and Connect Your Community accuses AT&T of deliberately failing to build out broadband to low-income communities in Cleveland. The report analyzes data AT&T submitted to the FCC which shows robust high speed internet service in suburban areas and sparse build out in low-income areas.


A Morning Consult/Politico poll found a growing number of Americans now believe Russia did in fact interfere with the 2016 election. Forty-one percent now believe Russia influenced the results, up 9 percentage points from December.


President Trump has nominated FCC Chairman Ajit Pai for another term. It's a five-year term that requires Senate approval. If confirmed, Pai's Chairmanship would be retroactive to July 1st, 2016, which was when Pai's term as Commissioner expired. Pai has remained on board though because FCC rules allow Commissioners to keep their jobs for 18 months past the expiration of their term. Trump appointed Pai Chairman after Pai officially endorsed Trump's nomination of Jeff Session for Attorney General. Prior to announcing the nomination, Trump and Pai had a closed door meeting. The Electronic Privacy and Information Center swiftly responded with a FOIA request to obtain details about that meeting.


Neither Ajit Pai nor the Republican-controlled Congress are fans of the FCC's internet sevice provider privacy rules passed under previous FCC Chairman Tom Wheeler. But Ajit Pai stated last week at a Senate hearing, in a departure from the Republican line, that the FCC would still be obligated to protect consumers' privacy even if Congress eliminates the privacy rules. A measure to eliminate the privacy rules using the Congressional Review Act has the support of 23 Republican co-sponsors.



The National Science Foundation has pledged $100 million for tech hubs focused on 5G wireless. The initiative is called the Platform for Advanced Wireless Research (PAWR) and will be led by NSF and Northeastern University.