Agenda

Reports of a potential wireless partnership between Sprint, Charter and Comcast have quieted speculation about a merger between Sprint and T-Mobile. But analysts say T-Mobile could play a role in any such arrangement.

Sprint Chairman Masayoshi Son struck a exclusive two-month deal to hold discussions with Charter and Comcast through July focusing on potential partnership arrangements. One such deal could include the cable companies taking an equity stake in Sprint and investing in the carrier’s network, through which they could presumably launch a branded service. But T-Mobile could join such an effort, Jonathan Chaplin of New Street Research wrote in a note to investors. A model that complex would be difficult to pull off, but it could benefit all stakeholders. “Actually, the best-case scenario (for T-Mobile) would be a four-way deal; however that seems tough to get across the goal line,” Chaplin wrote. “The worst-case scenario would see a Sprint/cable deal that leaves T-Mobile out in the cold entirely; we don’t think this is the most likely outcome either. And then there are a host of scenarios in between, where T-Mobile would benefit, potentially greatly, but without the negotiating leverage that many have assumed.”

[Commentary] Comcast and Charter are negotiating with Sprint to offer wireless services to their cable and high-speed internet customers. The real disruption may be how Sprint’s negotiations with the cable companies put a potential merger with T-Mobile USA in limbo. The parent companies of Sprint and T-Mobile, SoftBank of Japan and Deutsche Telekom of Germany, have been in negotiations to merge their American wireless companies. If Comcast and Charter are bidding for a stake in Sprint, then those Sprint and T-Mobile negotiations will be affected.

[Commentary] Sprint needs a deal. With a market value roughly equal to its $33 billion in net debt, a tie up may be the only way for Sprint to get the resources to invest enough in its network to remain competitive. A deal with cable would be bad for Sprint’s wireless competitors because it would reduce the likelihood of industry consolidation through the hoped-for merger of Sprint and T-Mobile . It also would lower the cost of offering wireless service for the two cable companies, further exacerbating wireless competition. The optimistic view is that Sprint is talking to the cable guys to get T-Mobile and its majority owner Deutsche Telekom to agree to a deal on more favorable terms.

Apparently, Sprint has entered into exclusive talks with Charter Communications and Comcast as the cable companies explore a deal that could bolster their plans to offer wireless service, according to people familiar with the matter. Sprint Chairman Masayoshi Son and the cable firms have entered into a two-month, exclusive agreement for discussions through late July, putting merger talks with T-Mobile US on hold. One arrangement that has been considered is for Charter and Comcast to invest in improving Sprint’s network in exchange for favorable terms to offer wireless service using the carrier’s network. Such a deal could involve the companies taking an equity stake in Sprint. The cable companies already have such a network-resale agreement with Verizon Communications, but the Sprint deal could provide much better terms. While thought to be the much less likely scenario, the talks also include the possibility for the cable companies to jointly acquire Sprint. Sprint has a market value of $32 billion and $32.6 billion of net debt.

Federal Communications Commission Chairman Ajit Pai announced that the following items are tentatively on the agenda for the July Open Commission Meeting scheduled for Thursday, July 13, 2017:

1. Call Authentication Trust Anchor – The Commission will consider a Notice of Inquiry that seeks comment on methods to authenticate telephone calls to further secure our telephone networks against illegal robocallers. The Notice seeks comment on implementing authentication standards for telephone calls, as well as the Commission’s role in this process and other public policy considerations. (WC Docket No. 17-97)
2. Advanced Methods to Target and Eliminate Unlawful Robocalls – The Commission will consider a Notice of Inquiry that explores methods by which reassigned telephone number data could be made available to callers to avoid making unwanted calls to consumers. (CG Docket No. 17-59)
3. Protecting Consumers from Unauthorized Carrier Changes and Related Unauthorized Charges – The Commission will consider a Notice of Proposed Rulemaking outlining steps to further curtail slamming and cramming. (CG Docket No. 17-169)
4. Rural Call Completion - The Commission will consider a Second Further Notice of Proposed Rulemaking that proposes rule changes to better address ongoing problems in the completion of long-distance telephone calls to rural areas. The Second Further Notice of Proposed Rulemaking proposes to (1) adopt new rural call completion requirements for covered providers, and (2) eliminate the Commission’s existing rural call completion recording, retention, and reporting rules. (WC Docket No. 13-39)
5. Video Description – The Commission will consider a Report and Order which increases the required hours of video described programming that covered broadcast stations and MVPDs must provide to consumers. (MB Docket No. 11-43)
6. Updating the Part 2 Equipment Authorization Program – The Commission will consider a First Report and Order that would update and amend its equipment authorization program by replacing two certification procedures with a new Supplier’s Declaration of Conformity process, codifying procedures for the electronic labeling of devices, modernizing the requirements related to the importation of electronic equipment, and incorporating up-to-date methods for equipment compliance measurements into the rules. (ET Docket No. 15-170)
7. Radar Services in the 76-81 GHz Band – The Commission will consider a Report and Order that would address use of the 76-81 GHz band under the Part 95 rules to support a broad range of vehicular radar uses, such as collision avoidance and adaptive cruise control systems, as well as to expand the types of fixed and mobile radar operations permitted within airport environments. (ET Docket No. 15-26)
8. Wireless Microphone Operations – The Commission will consider an Order on Reconsideration and Further Notice of Proposed Rulemaking that would address licensed and unlicensed wireless microphone operations in the TV bands and various other frequency bands. (GN Docket No. 14-166; ET Docket No. 14-165)

Americans are reaping the benefits of rapid and exciting changes in the ways we communicate. But many of the problems that consumers confront stubbornly remain. For too long, Americans have been plagued by unwanted and unlawful robocalls. For too long, they’ve found unauthorized charges and changes to their phone service on their bills—practices commonly known as “slamming” and “cramming.” And for too long, some phone calls that are placed to rural residents have been dropped. Efforts to excommunicate this unholy triad of consumer scourges—unlawful robocalls, slamming/cramming, and rural call completion—headline the FCC’s agenda in July. During Consumer Protection Month, we will take up several public interest initiatives to address problems that too many Americans face.

As part of its ongoing efforts to accelerate access to high-speed Internet service, the Federal Communications Commission is seeking comment on ways to increase deployment, competition and innovation in the market for broadband in apartments, shopping malls and other “multiple tenant environments,” or MTEs. While FCC rules currently bar telecommunications and video services providers from entering into exclusive agreements that can stifle competition in MTEs, the FCC has adopted a Notice of Inquiry seeking information about what additional barriers to deployment may exist. The FCC is requesting input on whether and how it should act to remove any barriers that raise the cost and slow deployment in MTEs of next-generation networks, which are critical to jobs, health care, education, innovation, and information.

Specifically, the Notice seeks comment on:

• The current state of broadband competition in MTEs.
• Whether there are state and local regulations that may inhibit or have the effect of inhibiting broadband deployment and competition within MTEs, such as by preventing market entry or mandating infrastructure sharing by private companies.
• Whether the Commission should take any action regarding service providers’ exclusive marketing and bulk billing arrangements within MTEs.
• How revenue sharing agreements and exclusive wiring arrangements between MTE owners and Internet service providers may affect broadband competition within MTEs.
• Other practices that may impact the ability of Internet service providers to compete in MTEs.

President Donald Trump said that expanded access to broadband internet service in rural areas will be part of the infrastructure plan he will submit to Congress, helping to bridge a digital divide that leaves small towns behind.

"I will be including a provision in our infrastructure proposal -- $1 trillion proposal, you’ll be seeing it very shortly -- to promote and foster, enhance broadband access for rural America also," President Trump said. Trump’s plan to use $200 billion in federal funds to leverage investment in national infrastructure improvement has prompted rural groups to fight for broadband’s inclusion, arguing that such access is a 21st-century version of the electrification and water projects that brought prosperity to sparsely populated areas in the past.

Agriculture Secretary Sonny Perdue told reporters while aboard Air Force One en route to the event that private investors haven’t found rural areas as profitable as urban ones, potentially making a greater federal role in expanding broadband appropriate. "We think we ought to have the same push to have broadband connectivity all over the country because in the 21st century it is just as important as a telephone, water, sewer, roads," Sec Perdue said. "It has become an infrastructure of necessity."

The White House is gathering technology leaders on June 22 to discuss how the industry aims to drive economic growth in emerging technology areas like wireless broadband and drones.

Administration officials from the Office of Science and Technology Policy will bring in leaders from 25 technology companies and venture capital firms for an event titled “American Leadership in Emerging Technology.” The meeting is part of “tech week,” an initiative aimed at bolstering the Trump administration's relationship with the technology industry — which has been contentious — and the administration’s own information technology infrastructure. The event at the White House departs from tech week’s previous focus on modernizing technology within the federal government and instead will focus on “outward facing tech policy,” and “defending America’s leadership in the technology economy.” Jared Kushner is slated to be at the event, along with other administration officials and advisers including Ivanka Trump, Director of the National Economic Council Gary Cohn and Deputy US Chief Technology Officer Michael Kratsios.

The tech leaders will break into three working groups to discuss drones, 5G wireless broadband and the Internet of Things (IoT), and financing emerging technology before meeting with President Trump to discuss the breakout sessions.

President Donald Trump will commit on June 21 to improving internet access in the country’s hardest-to-reach rural areas as a part of his forthcoming push to improve the nation’s infrastructure.

President Trump will outline his pledge during a speech in Cedar Rapids, Iowa, shortly after visiting Kirkwood Community College, which specializes in fields like precision agriculture. In the eyes of the White House, farmers can’t use emerging big data tools that track crops in real time without faster, more reliable broadband internet service — so the Trump administration intends to tackle that challenge as part of its campaign to upgrade the country’s roads and bridges. “Even in American agriculture, technology is the key to better yields and more returns,” said Ray Starling, the special assistant to the president for agriculture, trade and food assistance. Those farmers in the coming years will have to learn “not only how to turn a wrench,” Starling said, “but also how to write code and rewire circuit boards.” But Starling did not offer any specifics as to how Trump planned to improve broadband in the country’s agricultural heartland.