Telecommunication

On Nov 22 the Federal Communications Commission will vote to adopt a rule ensuring that our universal service funds—which provide billions annually to support broadband deployment in rural communities—are not used to purchase insecure network equipment. We also will kick off a rulemaking to identify where this equipment is in networks today and how to help carriers serving rural America replace it. I think with a few changes we can better protect the integrity of our networks and offer more certainty and predictability for carriers.

GAO was asked to review funding reforms and fraud controls the Federal Communications Commission has implemented for rate-of-return carriers. This report examines the extent to which FCC: (1) has implemented funding reforms specific to rate-ofreturn carriers, and (2) is managing fraud risks for the high-cost program in accordance with leading practices. One of the reforms that GAO reviewed established a funding mechanism for the carriers whereby FCC determines the level of financial support to provide the carriers based on cost and revenue estimates produced by a model.

Internet usage is no longer a good deal in the US. In France, consumers pay about 90 euros (or $100) a month for a combination of broadband access, cable television and two mobile phones. A similar package in the United States usually costs more than twice as much. Many Americans have a choice between only two internet providers. A few companies have grown so large that they have the power to keep prices high and wages low.

The Federal Communications Commission's Wireline Competition Bureau issued an order granting two petitions seeking waiver of obligations to provide service to a specific number of locations as part of the rural broadband experiments program, filed by Allamakee-Clayton Electric Cooperative and Consolidated Communications Networks. The bureau said petitioners demonstrated the required number of locations exceeds the actual number the petitioners have been able to identify within their respective study areas.

The Federal Communications Commission announced settlements with CenturyLink and West Safety Communications to conclude investigations into violations of FCC rules in connection with a multi-state 911 outage that took place on Aug 1, 2018.

The Federal Communications Commission began subsidizing home phone lines in 1985 to provide “the opportunities and security that phone service brings” to people who cannot afford it, according to the FCC’s website. The Lifeline program started including cellphone plans in 2005. Currently, subscribers receive $9.25 per month to put toward a discounted cellphone plan designed by provider companies. For some, that means a cap of 250 voice minutes and 2 GB of mobile data.

It’s fair to say that a Council on Foreign Relations appearance by the Chairman of the Federal Communications Commission is out of the ordinary. But these are extraordinary times. We’re at a pivotal moment in the evolution of communications technology. Across America and around the world, private companies have begun rolling out the next generation of wireless technology—commonly known as 5G. For all the opportunities that 5G will unlock, it will also create new challenges. Chief among these is the main subject of my remarks: network security.

Thank you to the US Chamber of Commerce and to the Competitive Carriers Association for organizing this gathering today. This gathering represents the core of the “all of government” approach to address 5G security concerns.

Dayslong power outages in California are revealing an inconvenient fact about modern phones: When the electricity goes out, so do they. Power shutdowns in the state meant to prevent further fire risk have cut power to some cell towers, as well as to cable providers that sell home voice services along with television programming and internet access.

AT&T is planning to spend just $20 billion on capital investment in 2020, down from $23 billion in 2019. The company is under pressure from investors to control spending, in part because its TV business is tanking and because of AT&T's giant debt load stemming from the purchases of DirecTV and Time Warner. AT&T increased capital investment between 2018 and 2019, but its 2020 outlook would push the company's spending to lower than its 2018