Wireless Telecommunications

The Trump Administration’s plan for $1 trillion in infrastructure spending presents an opportunity not only to repair existing roads, bridges, and tunnels, but also to build out broadband internet coverage in rural areas. On July 24, the Center for Technology Innovation hosted a panel discussion at Brookings about how the administration, Congress, and the private sector can work together to address broadband needs of unserved (no access) and underserved (limited access) populations.

The event began with opening remarks from House Communications Subcommittee Chairman Marsha Blackburn (R-TN), focused on the congressional perspective on broadband infrastructure. To close the access gap, Chairman Blackburn seeks to eliminate regulatory barriers, increase investment in unserved areas, and redraft current Federal Communications Commission maps to more accurately reflect the percent of Americans that lack broadband access. The panelists largely focused on ways the government and private sector can work together to expand broadband internet access.

To provide you with a complete picture of mobile network performance in the first half of 2017, we’re offering a three-part, complementary series of special reports to show you how the networks fared across the entirety of the United States, within each of the 50 states, and across the 125 most populated metropolitan markets.

Verizon’s performance on the national stage was outstanding in all test categories in the first half of 2017. AT&T, meanwhile, offered strong competition, finishing second in five out of six performance categories and earning a share of the Text RootScore Award with Verizon and Sprint. Sprint showed improvement at the national level, delivering particularly strong text results and earning a share of the United States Text RootScore Award. T-Mobile’s rankings at the national level remained unchanged compared with those in our previous test period.

The Open Technology Institute team did a technical experiment at this Spring’s March for Science in Washington (DC) to try and answer these questions and explore new ways of detecting when your cell phone is being surveilled. The increasingly broad use of cell site simulators by law enforcement is controversial for many reasons. As a general matter, the devices themselves indiscriminately invade the privacy of everyone around them because they connect to, and can capture data from, all phones within their range. But the devices have also been used in controversial ways. In particular, they have been deployed disproportionately in areas made up predominantly of people of color.

We decided to conduct an experiment to see whether and how one might be able to detect the use of cell site simulators during a large protest. In particular, OTI conducted a spectrum survey at the March for Science in April 2017 to experiment with ways to identify these devices. Although our results were inconclusive, they gave us new insights into how best to tackle this problem, insights that we and others can apply to future experiments with the same goal: developing tools that give us the power to watch the watchers.

Today’s topic – Next Generation 5G Wireless Networks: Seizing the Opportunities and Overcoming the Obstacles – is one of great importance. Countries across the globe are vying to shape the next generation of mobile technologies and grab their slice of the economic bounty. There is no time to sit on the sidelines when everyone, including the standard bodies, have expedited their work to enable deployments as early as 2019. So, how do we “seize the opportunity” that future wireless technologies provide and remain the global leader in wireless, while overcoming the many obstacles – or challenges – that lie in the way?

Recently, Verizon was caught and subsequently admitted to throttling all video traffic on its network. July 25, the company is finally addressing the potential network neutrality issue. Verizon said that its actions represented “reasonable network management,” which is an exception carved out under the 2015 net neutrality rules. "Video optimization is a non-discriminatory network management practice designed to ensure a high quality customer experience for all customers accessing the shared resources of our wireless network,” a spokesperson said.

It’s pretty expected that Verizon would argue this. It said last week that its video throttling was a matter of “network testing” that would be “completed shortly,” and speeds since appear to have returned to normal. The trouble is, the order is a little vague on what constitutes “reasonable network management,” since the commission assumed it might take many different forms. But it has a handful of guidelines of what might and might not violate the exception. One important limitation: the practice must be “primarily motivated by a technical network management justification rather than other business justifications.”

Cattlemen, wheat growers, "agri-women" and state agriculture departments are all pushing back on Microsoft's push for reserved TV spectrum channels for unlicensed use, saying broadcasting is vital to rural connections (even as Microsoft is arguing it needs the spectrum to provide rural broadband connectivity). That is according to a letter to Federal Communications Commission Chairman Ajit Pai from nine agriculture groups to the FCC.

Chairman Pai has made rural broadband a prime directive for the agency. "While our organizations certainly understand the need for improved broadband access in rural America and support the deployment of high-speed broadband in our communities, this proposal will only serve to deprive our members of critical access to local broadcast television coverage." The National Association of Broadcasters, which circulated the letter to reporters, has told the FCC that Microsoft's proposal should be a nonstarter. The agriculture groups, which include the National Association of State Departments of Agriculture, agree and sung the praises of local ag news in their letter.

We live in an age of innovation and disruption, of opportunity and cost, of benefit and risk. As communications technologies continue to evolve, I believe digital equity is within reach, but to achieve it we must continue to bridge gaps – in both access and understanding – and to work together for the communities we all serve. For our part, AT&T looks forward to continuing to support and develop a diverse workforce, to support minority-owned vendors and suppliers, to creating jobs for diverse communities, and to investing in technology and networks that will transition us to a 5G future, which will further bridge the digital divide, creating economic opportunities for communities that need them most.

The US Government Accountability Office was asked to review FirstNet’s progress and efforts to ensure the network is reliable, secure, and interoperable. GAO (1) examined FirstNet’s efforts to establish the network; (2) obtained stakeholder views on network reliability, security, and interoperability challenges FirstNet faces and its efforts to address them; and (3) assessed FirstNet’s plans to oversee its network contractor. GAO reviewed FirstNet documentation, key contract oversight practices identified in federal regulations and other sources, tribal communication practices identified by federal agencies, and assessed FirstNet’s efforts and plans against these practices. GAO also interviewed FirstNet officials and a nongeneralizable selection of publicsafety, tribal, and other stakeholders selected to obtain a variety of viewpoints. GAO recommends that FirstNet fully explore tribal stakeholders’ concerns and assess its long-term staffing needs. FirstNet agreed with GAO’s recommendations.

[I]t is particularly important that the United States and Caribbean nations collaborate. Our countries share many common interests and significant cultural and economic ties. The U.S. is the leading trading partner for the Caribbean, and we have benefitted greatly from the contributions of the Caribbean diaspora community in the United States. Unlike baseball, this is not a game where there is only one winner. When we expand opportunity and enhance security in one nation, the benefits can flow throughout the region. Recognizing these benefits, Congress last year made it the official policy of the United States to increase engagement with government leaders, the private sector, and civil society groups in the Caribbean region. I am proud to be here in the spirit of this law and want you to know that Chairman Pai is committed to enhancing the FCC’s engagement with the Caribbean region.

On July 19, 2017, the Senate Commerce Committee held a hearing to examine the nominations of Ajit Pai, Jessica Rosenworcel, and Brendan Carr for seats on the Federal Communications Commission.

On March 7, President Donald Trump nominated Pai, the FCC’s current chairman, for a second five-year term ending June 30, 2021. Rosenworcel is nominated for a term that would end June 30, 2020. Carr, the current general counsel at the FCC, has actually been nominated for two terms, one expiring June 30, 2018 and the second ending June 30, 2023. Carr served as legal adviser to then-FCC Commissioner Pai for three years before Pai was named chairman and appointed Carr as general counsel.

Committee Chairman John Thune (R-SD) characterized the hearing as both an examination of the nominees and a FCC oversight hearing, “fulfilling a commitment I’ve made to hold regular, biannual oversight hearings of the Commission.” His opinions of the nominees: “In my view, the FCC will be in very good hands when all three of these nominees are confirmed.” He noted Chairman Pai’s efforts around transparency and FCC processes, network neutrality, and robocall prevention.

Sen Bill Nelson (D-FL), the committee’s ranking member, raised issues around all three nominations. Concerning Rosenworcel, he noted that she should not have been forced to step down from the FCC at the end of 2016 when the Senate failed to reconfirm her.

Sen. Nelson identified two concerns about Brendon Carr: 1) “two consecutive terms to which the Senate is being asked to confirm you would provide you with the longest single, initial period of service of any nominee to the FCC” and 2) “it is hard to recall a similar situation where someone was nominated to serve at the commission alongside, rather than to follow, their current boss.” He stressed that it is important to have commissioners who have independent voices and “ones who will fight for consumers and the public interest.” He later asked Carr to cite an issue that he and Chairman Pai disagree on – Carr failed to answer on more than one occasion. “Going forward, I’ll make my own decisions; I’ll call it the way I see it,” Carr said. “I think my record shows that I’m not a shrinking violet.” Sen. Nelson called that response “not confidence-building.”

Finally, Sen. Nelson congratulated Chairman Pai on some recent pro-consumer actions, but said, “[M]any view these most recent consumer protection actions as mere icing on what is otherwise an unpalatable cake. A cake constructed out of actions that eliminate competitive protections, that threaten dangerous industry consolidation, that make the Internet less free and less open, and that weaken critical consumer protections for those most vulnerable.”

Net Neutrality

Network neutrality and the FCC’s 2015 decision to classify broadband internet access service providers as telecommunications providers under Title II of the Communications Act were key issues for the hearing. In his opening remarks, Chairman Thune said,

“I am pleased that Chairman Pai has sought to hit the reset button on the 2015 Title II Order, because, as I have previously said, the FCC should do what is necessary to rebalance the agency’s regulatory posture under current law. I continue to believe, however, that the best way to provide long-term protections for the Internet is for Congress to pass bipartisan legislation. Two and a half years ago I put forward legislative principles and a draft bill to begin the conversation, and I stand ready and willing today to work toward finding a lasting legislative solution that will resolve the dispute over net neutrality once and for all.”

Two senators questioned the nominees about the impact of the Title II decision on broadband investment in the US. Sen. Mike Lee (R-UT) cited stats, offered by broadband providers, that investment has gone down. He took issue with a New York Times story that said investment had gone up since the 2015 order. He said that increase included foreign investment, some of which he said was spurred by the Title II disincentive to invest in the US, and that there was evidence that US infrastructure investment had declined precipitously.

On the other side was Sen. Ed Markey (D-MA) who said that almost half of the venture capital funds, or about $25 billion, invested since 2015 was in Internet-related businesses, with broadband providers investing $87 billion, the highest rate in a decade. Sen Markey said investment and job creation are high, so there is no problem that rolling back Title II or reviewing net neutrality rules would fix.

Both senators asked Chairman Pai for his take on their respective views, but the chairman's answer was cautious given that he has an open proceeding before him and comments on his proposal to roll back Title II and review the rules are still coming in. He said that evidence of decreased investment was one of his concerns, but that the FCC was testing that theory, as well as the opposite, as part of its due diligence.

E-Rate

While Rosenworcel, Carr and Chairman Pai all generally agreed on the importance of the FCC's E-rate program -- which makes broadband services more affordable for schools and libraries -- they initially refrained from an outright promise not to cut its funding. Sen. Ed Markey (D-Mass.) had to ask Rosenworcel a second time before she explicitly said she would not reduce the funding for E-rate. Neither Pai nor Carr would make that commitment.

Broadband Deployment

The three nominees were largely unanimous on measures to expedite rural broadband like “dig once” policies, which require installation of conduits for fiber-optic cable when preparing infrastructure such as roads. The policies aim to reduce cost and limit wait times for installing fiber in different municipalities.

“I think it would be helpful for ‘dig once’ policies and similar policies to be the law of the land,” Chairman Pai told Sen. Amy Klobuchar (D-MN).

“The agency, working with local jurisdictions, should try to come up with a model code — one that includes policies like ‘dig once,’” Rosenworcel said. She added that there should be incentives built in for local communities to adopt the model.

Senators also pressed the three on the need for accurate coverage maps so that subsidies issued to companies to build out their infrastructure are actually targeted to the right places.

“I would hope to get your commitment that the commission will work to ensure that mapping data used at the FCC accurately accounts for on-the-ground mobile coverage,” said Sen. Cory Gardner (R-CO). The nominees affirmed they are committed to working toward ensuring accurate data coverage moving forward.

First Amendment

Sen. Tom Udall (D-NM) pressed all of the nominees on their commitment to the First Amendment in light of the many statements President Trump has made disparaging outlets covering his Administration. Sen. Udall pointed to a story that the White House could use AT&T’s proposed acquisition of Time Warner as a way to punish CNN for its stories and suggested the Administration might want to reward Sinclair by approving Sinclair’s purchase of Tribune television stations. Each of the nominees pledged to speak out against violence or intimidation against journalists. Chairman Pai reiterated that the White House had not contacted him about retaliating against negative news stories and said he would not do so if asked. And he promised that the FCC would not be used to punish media companies or reward others and would be troubled by any attempt to pressure it to do so.

"I have not directly had any conversations with anyone in the administration with respect to media regulatory proceedings," Chairman Pai said. "To the best of my knowledge, no one on my staff or in the FCC has indirectly had any such conversations as well."

“I have consistently stated that I believe … that First Amendment freedoms, including the freedom of the press, are critical,” Pai added. “If I were ever asked by anyone in the administration to take retaliatory action, for instance, in a media regulatory proceeding, I would not do so.”

Conclusion

If all of the hearing’s nominees are confirmed by the full Senate, the FCC would have a 3-2 Republican majority. Senators on the committee have until July 21 to submit additional questions for the nominees who will be given time to reply in writing.