Reporting

Expanding high-speed internet access to rural areas has been one of the few issues that’s drawn bipartisan support in a sharply divided Congress. And while nothing’s assured, backing by Federal Communications Commission Chairman Ajit Pai may help push those congressional efforts across the finish line.

Chairman Pai recently talked up the Senates Gigabit Opportunity Act (S 1013), that would effectively legislate his proposal for spurring broadband investment in remote areas, where internet access is available through 1990s-era dial-up service. The legislation — introduced May 3 by Sen Shelley Moore Capito (R-WV) and co-sponsored by Sen Chris Coons (D-DE) — would provide tax benefits for investments in “gigabit opportunity zones,” primarily in low-income and rural communities. On the other side of the Capitol, Rep David Loebsack (D-IA) introduced related legislation, the Rural Wireless Access Act (HR 1546), which would require the FCC “to establish a consistent methodology for its collection of coverage data about the available speed tiers and performance characteristics of commercial mobile and data service” for use in deciding on the eligibility of areas that can receive funds from the FCC-administered Universal Service Program or similar initiatives.

[Commentary] This week, the White House hosted a series of meetings, dubbed “Tech Week”, between leaders of the technology sector and Trump administration officials. Broadband was a key topic there, although discussions about getting everyone access to high-speed Internet service were held outside the White House, too – in Iowa, at Congress, and at the Department of Commerce. The discussions revealed how hard it is to get a handle on the rural broadband divide, and the complexity of bridging it.

Attendance at the June 22 House Small Business Committee's Subcommittee on Agriculture, Energy & Trade hearing on improving broadband deployment in rural America was small, but it was yet another dive into a crowded pool as Washington drilled down on the issue, including on Capitol Hill, at the Federal Communications Commission and even in Iowa, where the President talked up rural broadband as well.

The chairman of the subcommittee, Rep Rod Blum (R-IA), is from a rural district and also owns a small technology company that relies on internet access, so he cautioned the audience not to read the light attendance as lack of interest, only that there was a lot going on at the Hill. Chairman Blum said "the nation's small telecom providers are the ones that traditionally supply the bulk of broadband services to the most rural parts of America, and that is no easy task."

Much of the media coverage surrounding President Donald Trump's meetings with tech industry executives this week has focused on the companies in the room — Apple, Microsoft, Verizon and so on. But separate meetings organized around the same event have also included a smattering of government officials, including on June 22 the head of the Federal Communications Commission, Ajit Pai.

On one level, Chairman Pai's attendance makes sense: The day's meetings focused on the future of wireless technology, an area where the FCC has a lot of expertise and jurisdiction. On another level, though, Chairman Pai's presence was unusual: As the head of an agency that's supposed to keep its distance from the White House, Pai has shown no qualms about appearing on the same agenda with President Trump. And that is now raising questions among some about his overall independence from the Trump administration.

Mountain View's (CA) tech startups are girding themselves for a big political fight over the data vital to their businesses. Smaller web companies say they could be crippled by slower bandwidth while premium data service is reserved for the large tech giants. The issue is network neutrality, the principle that all internet traffic should be treated equally. If the proposed changes go forward, the internet as we know it would come to resemble cable TV, said Gigi Sohn, a Mozilla fellow who previously served as an Federal Communications Commission attorney.

Early last August, an envelope with extraordinary handling restrictions arrived at the White House. Sent by courier from the CIA, it carried “eyes only” instructions that its contents be shown to just four people: President Barack Obama and three senior aides. Only in the administration’s final weeks in office did it tell the public, in a declassified report, what officials had learned from Brennan in August — that Russian President Vladimir Putin was working to elect Donald Trump.

Over that five-month interval, the Obama administration secretly debated dozens of options for deterring or punishing Russia, including cyberattacks on Russian infrastructure, the release of CIA-gathered material that might embarrass Putin and sanctions that officials said could “crater” the Russian economy. But in the end, in late December, President Obama approved a modest package combining measures that had been drawn up to punish Russia for other issues — expulsions of 35 diplomats and the closure of two Russian compounds — with economic sanctions so narrowly targeted that even those who helped design them describe their impact as largely symbolic. President Obama also approved a previously undisclosed covert measure that authorized planting cyber weapons in Russia’s infrastructure, the digital equivalent of bombs that could be detonated if the United States found itself in an escalating exchange with Moscow. The project, which President Obama approved in a covert-action finding, was still in its planning stages when he left office. It would be up to President Trump to decide whether to use the capability.

President Donald Trump has a new morning ritual. Around 6:30 am on many days — before all the network news shows have come on the air — he gets on the phone with a member of his outside legal team to chew over all things Russia. The calls — detailed by three senior White House officials — are part strategy consultation and part presidential venting session, during which President Trump’s lawyers and public-relations gurus take turns reviewing the latest headlines with him. They also devise their plan for battling his avowed enemies: the special counsel leading the Russia investigation; the “fake news” media chronicling it; and, in some instances, the president’s own Justice Department overseeing the probe.

His advisers have encouraged the calls — which the early-to-rise President Trump takes from his private quarters in the White House residence — in hopes that he can compartmentalize the widening Russia investigation. By the time the president arrives for work in the Oval Office, the thinking goes, he will no longer be consumed by the Russia probe that he complains hangs over his presidency like a darkening cloud. Senior officials have also been devising an overhaul of the White House communications operation to better meet the offensive and defensive demands of the president they serve, as well as the 24-hour cycle of tweet-size news.

President Donald Trump gave his first interview in more than a month on June 22, and the result — airing June 23 on Fox News — included President Trump congratulating himself for his suggestion that there might be tapes of his conversations with former FBI Director James B. Comey. What's interesting here is that this isn't the official White House position. White House spokeswoman Sarah Huckabee Sanders denied June 22 that President Trump's six-week-old tweet about possible tapes was meant to threaten or influence Director Comey. But then President Trump just went out and basically said it himself.

Legal challenges to the Federal Communications Commission's business data services (BDS) reforms have been consolidated in the US Court of Appeals for the Eighth Circuit. Petitions to deny some or all of the FCC's BDS report and order updating the framework for regulating business data services had been filed in three separate federal appeals courts. Those appeals came from CenturyLink, Citizens Telecommunications Company of Minnesota and a consortium of telecoms including Sprint.

The DC Circuit is the one with primary jurisdiction over telecommunications, but in the case of multiple filings, the US Judicial Panel on Multidistrict Litigation holds a lottery to determine the venue. CenturyLink told the US Court of Appeals for the Fifth Circuit that the FCC's regulation of rates on DS1 and DS3 service in areas deemed noncompetitive was arbitrary, capricious, an abuse of discretion and otherwise illegal. It said the FCC forced those price caps on competitive carriers despite evidence the cost of service had actually gone down.

Federal Communications Commission Chairman Ajit Pai was spotlighting the news that Sen Chris Coons (D-DE) has signed on as a cosponsor of the Gigabit Opportunity (GO) Act. The bill was introduced in May by Sen Shelley Moore Capito (R-WV). The bill would give tax breaks to companies for investing in gigabit-capable expansion into those communities; direct the FCC to release a framework that encourages states, counties and cities to voluntarily adopt streamlined broadband laws and be designated as a “Gigabit Opportunity Zone;" and defer capital gains for upgrades and allow companies to expense the cost of creating those zones, as well as allow states to more easily issue tax-exempt bonds.

In a statement released after the news of Sen Coons' support, Chairman Pai said: “Closing the digital divide is a top national priority. Gigabit Opportunity Zones would go a long way toward meeting that priority. By streamlining regulations to encourage broadband deployment and establishing targeted tax incentives for entrepreneurs to build those networks, we can empower millions of Americans, rural and urban alike. This is a common sense idea, and I’m excited to see it gaining bipartisan support."