Thursday, May 23, 2019
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Justice Department staff had urged rejection of Sprint-T-Mobile merger
How the US-China trade war became a conflict over the future of tech
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The House Commerce Committee dove into the omnibus Lifting Infrastructure for Tomorrow's (LIFT) America Act, which includes $40 billion for broadband buildouts. Ranking Member Greg Walden (R-OR) said rebuilding infrastructure was a bipartisan priority, as was the agreement on better mapping to prevent "rampant overbuilding." Witness Mignon Clyburn, principal, MLC Strategies, LLC, and former commissioner at the Federal Communications Commission, said the FCC should not be using current, bad, broadband coverage maps to determine who needs broadband. "I recommend that we throw those coverage maps out," she said. "They should never again be used for any proceedings, including for funding purposes."
Clyburn also said that when the government does hand out that $40 billion broadband money, it should provide a preference for those who offer 1 gig speeds. Clyburn said that the money should be targeted to unserved, rather than underserved, communities, and avoid duplicative funding. "The new funding provided by the LIFT America Act should be restricted to those unserved areas that are not receiving funds from the e Connect America Fund Phase II, the USDA’s ReConnect program, or the upcoming Rural Digital Opportunity Fund," she said.
Apparently, a handful of Democratic Reps are shopping around a letter that echoes internet service provider lobbyist talking points, incorrectly claiming that the Save the Internet Act to restore network neutrality is dead and calling for the creation of a disingenuous “bipartisan working group,” modeled after the one created in the Senate by Sens Roger Wicker (R-MS) and Kyrsten Sinema (D-AZ), who are widely seen as enemies of the effort to restore net neutrality. The group is rumored to be led by Reps Josh Gottheimer (D-NJ) Scott Peters (D-CA) who together have taken hundreds of thousands of dollars in campaign contributions from big telecom companies. The letter has not yet been released, and many of the signers may not be aware of its true intent.
If the total number of people in the US lacking broadband internet access was a state — at around 25 million — it would be roughly the population of Texas. But many argue the maps showing who has access and who doesn’t are wrong. Residents of Deep East Texas think they are one of those areas where the Federal Communications Commission has it wrong. “We’re trying to not just say ‘your maps are wrong.’ We’re trying to demonstrate and prove we do not have coverage here,” said Lonnie Hunt, executive director of the Deep East Texas Council of Governments, or DETCOG. DETCOG encompasses 12 rural TX counties and about 380,000 people. They have set aside $500,000 to research coverage and survey residents to figure out what access actually looks like and a plan on how to get it in their communities.
Pew Charitable Trusts, which has spent more than a year studying Americans’ access to broadband, will soon be launching an online explorer inventorying the data it’s collected — including information on gaps to coverage and the policies state governments are pursuing to fill them. The explorer will be a searchable catalog of everything from current laws and policies, to information on funding and financing, and will likely launch sometime late this summer, said Kathryn de Wit, manager of the project. “What we know at this point is that different communities can be difficult to connect for different reasons,” said de Wit. “At this point, state policy sets the framework for deployment within states. The first step in looking at whether states are effectively closing the gap is looking at policy, and that’s what my team has spent a significant amount of their time on.” This major effort has included a review of “all broadband deployment laws, statutes, codes, policies, executive orders and administrative codes across all 50 states,” de Wit said. “It was not a small undertaking, but it was important for us to do this research,” she said.
Justice Department staff members who’ve have been reviewing the proposed merger of T-Mobile and Sprint had recommended that the US government sue to block the $26 billion deal, fearing the combination of the country’s third- and fourth-largest wireless carriers could threaten competition. The recommendation came before the two companies offered new concessions meant to appease regulators, including pledges to divest certain lines of business and cap prices for consumers. Despite the recommendation, a decision to bring such a case has not been made. That authority rests with the DOJ’s top antitrust official, Makan Delrahim.
The United States 5G Leadership Act of 2019 legislation would establish US policy for the commercial deployment and security of fifth generation (5G) networks by creating the Supply Chain Security Trust Fund grant program. This program would help US communications providers remove from their networks Chinese equipment determined to threaten national security. The bill:
- Establishes U.S. policy to promote the deployment of secure commercial 5G networks and the development of the Information and Communications Technology (ICT) sector in the U.S.
- Establishes U.S. policy that American 5G networks should not include equipment or services provided by Huawei, ZTE, or their affiliates.
- Requires the Federal Communications Commission (FCC) to finalize its rulemaking that would prohibit the use of Universal Service Fund subsidies to buy equipment or services from providers who pose a national security risk.
- Establishes the Supply Chain Security Trust Fund grant program to help U.S. communications providers remove Huawei equipment from their networks — makes available up to $700 million from future spectrum auctions for this purpose.
- Requires a report on steps that the Federal government is taking to ensure the secure deployment and availability of 5G networks.
- Establishes an interagency program – led by the Department of Homeland Security – to share information regarding security, risks, and vulnerabilities with U.S. communications providers.
- Prioritizes funding to enhance U.S. representation at international 5G standards setting bodies, such as the International Telecommunications Union.
Sponsors include: Senate Commerce Committee Chairman Roger Wicker (R-MS), Sens. Tom Cotton (R-AR), Mark Warner (D-VA), Ed Markey (D-MA), and Dan Sullivan (R-AK).
Bipartisan Bill to Build National 5G Strategy, Protect US Telecommunications Infrastructure from National Security Threats
Rep Abigail Spanberger (D-VA) led the introduction of a bipartisan bill to protect next-generation telecommunications systems and mobile infrastructure in the United States. Rep Spanberger introduced the legislation alongside Rep Susan W. Brooks (R-IN), Tom O’Halleran (D-AZ), Francis Rooney (R-FL), Elissa Slotkin (D-MI), and Elise Stefanik (R-NY).
According to a 2018 North Atlantic Treaty Organization (NATO) report, Huawei’s growing influence as a leading supplier of 5G technology could be exploited by China to engage in espionage, monitor foreign corporations and governments, and support Chinese military operations. To combat the potential cyber threats associated with a Huawei 5G monopoly, the report recommends that non-Chinese companies invest in 5G research and development—and it calls on U.S. and European companies to reconsider the integration of Huawei technology into their 5G infrastructure. The Spanberger-led Secure 5G and Beyond Act would require the administration to develop an unclassified, national strategy to protect U.S. consumers and assist allies in maximizing the security of their 5G telecommunications systems. The strategy would also identify additional ways to spur research and development by US companies in a way that maintains access for all Americans. Specifically, the bipartisan Secure 5G and Beyond Act would require the administration to build an interagency strategy to:
- Secure 5th generation and future-generation telecommunications systems and infrastructure across the United States;
- Assist U.S. allies and defense partners in maximizing the security of 5G systems and infrastructure in their countries; and
- Protect the competitiveness of U.S. companies, the privacy of U.S. consumers, and the integrity of international standards-setting bodies against foreign political influence.
The Secure 5G and Beyond Act is companion legislation to a bill introduced in the Senate by Sens John Cornyn (R-TX), Mark Warner (D-VA), and Richard Burr (R-NC).
It may have begun as a trade war, but the US conflict with China is increasingly becoming a technology war. President Trump’s decision to confront Beijing over policies that he says discriminate against foreign companies and distort global markets has become a battle for control of advanced communications and computing technologies. That evolution is taking the transpacific conflict into sensitive realms of national security and human rights, making a quick settlement an ever more distant outcome. It is also putting at risk a wide array of US-China technology cooperation, including easy access to visas for researchers and venture capital funds for U.S. start-ups — and threatening to boomerang on US companies that China might retaliate against.
AT&T CEO Randall Stephenson’s strategy [to synergize all of the company properties] is breathtaking in scale and scope, the largest transformation underway at any company in the Fortune 500. AT&T’s main traditional competitor, Verizon, has chosen an entirely different path, and Stephenson’s new rivals are in markedly different businesses. Stephenson marvels, “I spend as much time thinking about Amazon and Netflix as I do thinking about Verizon and Comcast now.”
The grand vision begins with combining all the major elements of the media and telecom businesses, which no company has ever done before. Time Warner’s film and TV studios make some of the most successful and honored entertainment anywhere. Its cable networks—including TBS, TNT, CNN, Cartoon Network, and Turner Classic Movies—are distribution powerhouses. DirecTV carries those networks and others into homes through its satellite system. Add in AT&T’s wireless and landline customers, and Stephenson boasts that AT&T has “170 million distribution points we can push this through.” With such a combination of media assets, the theory goes, AT&T can achieve unprecedented advantages. It can differentiate its fast-commoditizing wireless network by offering customers deals on its proprietary content. It can expose its content to vast audiences through all its networks. Because it collects staggering volumes of customer data through its wired, wireless, and satellite networks, it can enable advertisers to target their messages with new precision and, in some cases, even track customers who have seen specific ads and thus gauge how the ads performed—services for which advertisers will gladly pay a big premium.
Benton (www.benton.org) provides the only free, reliable, and non-partisan daily digest that curates and distributes news related to universal broadband, while connecting communications, democracy, and public interest issues. Posted Monday through Friday, this service provides updates on important industry developments, policy issues, and other related news events. While the summaries are factually accurate, their sometimes informal tone may not always represent the tone of the original articles. Headlines are compiled by Kevin Taglang (headlines AT benton DOT org) and Robbie McBeath (rmcbeath AT benton DOT org) — we welcome your comments.
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