Industry to Work With Trump on Boosting Broadband Investment, Innovation

The new administration could encourage rural broadband, given Trump's overwhelming support from rural voters, said industry officials. Some are welcoming Trump's early indications that he is eyeing telecom infrastructure (see 1611090054). Liberal advocates voiced some concerns but said it was difficult to predict Trump policy. "People who think they know what is going to happen don't know what is going to happen," said Andrew Schwartzman, Georgetown Law Institute for Public Representation senior counselor.

Net neutrality rules could end up challenged or weakened under a Trump administration and Republican-controlled Congress, Dish Network CEO Charlie Ergen said, pointing to the party's general leaning toward a lighter regulatory hand. Ergen said during the company's Q3 earnings call that any move to weaken net neutrality rules likely would be tempered somewhat by consumer sentiment. Trump "was not that specific on his policies," meaning business uncertainty for some time, though there likely will be bipartisan support for more infrastructure spending and "a more rational" tax code, Ergen said. "You're going to see lighter regulation, which could help" gross domestic product, he said. "You have a chance for maybe immigration reform -- that would be positive for GDP.”

USTelecom looks forward to working with Trump on "infrastructure investment, particularly as it relates to advanced telecommunications networks and services," said President Walter McCormick, who was among many congratulating the incoming U.S. president and lawmakers. Retiring at year's end, the Republican will be succeeded by Mobile Future's Jonathan Spalter, a Democrat who many say can work across party lines, including with a Trump presidency (see 1610040059). CTIA President Meredith Baker, a Republican, said her group looked forward to working with the new administration "on spectrum and infrastructure to unlock the enormous potential of America's 5G future and to remain the world's leader in wireless.”

NCTA said it looks forward to discussing policies "that will continue to make America a global technology and entertainment leader." NAB hopes to work with the administration "in support of a pro-innovation and regulatory reform agenda that will allow local broadcasting to flourish and reach every viewer and listener, anywhere and any time," said CEO Gordon Smith, a Republican. The American Cable Association said it had a "proud tradition of working with lawmakers, irrespective of party.”

CTA congratulated the president-elect and is "optimistic that major policies supporting innovation, infrastructure and the economy can go forward," said its president, Gary Shapiro (see 1611090038), who had criticized Trump (see 1601210040 and 1606170031).

Consultant Grant Seiffert also noted Trump's calls for infrastructure investment, putting people to work and growing the economy. "People need to match their issues with what his agenda is at this point, he said. "He wants to get the ball rolling fast." But Seiffert said he also suspects the wireless industry is going to have an even harder time convincing the DOD to repurpose spectrum for private use because of Trump's interest in building up the military. "I just don't think the Pentagon is going to let go of that easily" and Trump could be supportive, said Seiffert, who consults for CTA and the Wireless Infrastructure Association, among others.

Executives and others said they don't worry for pending deals, while many called for cooler rhetoric than seen during the elections.

AT&T has "been the leading investor in the country for more than five years," said Chief Financial Officer John Stephens, at a Wells Fargo investor conference. "Our Time Warner transaction is all about innovation and economic development, consumer choice, and investment in infrastructure with regard to providing a great 5G mobile broadband experience," he said. "So we look forward with optimism to working with the leadership and providing benefits to consumers and to our shareholders.”

Nation ‘Fed Up’

The election "reflects the mood of the nation, one that is fed up with Washington’s protection of entrenched market power monopolies at the expense of average Americans who are paying more and getting less for many things, including broadband service," said Incompas CEO Chip Pickering, a former Republican representative from Mississippi. “It’s time to build America on competition. ... Deploying new competitive broadband networks, both wired and wireless, to all Americans, urban and rural, could be an important hallmark for the Trump presidency. President Teddy Roosevelt and President Ronald Reagan had the vision to break-up monopolies and unleash innovation, but Washington has drifted from these principles. President-elect Trump said more competition is a solution to rising health care costs, and he is a vocal opponent of consolidation and market power in the communications and media industry. These are encouraging signals.”

Former FCC Chairman Reed Hundt told us it was a "tough, sad night" for Democrats like him. "The Trump infrastructure approach is ideal for the communications and power networks," said Hundt, now CEO of Coalition for Green Capital. "Its precondition is that a surge of public money must be combined with private sector investment and that applies much better to the two electron networks than to transportation.”

“We’re a resilient and re-inventive people; we’ve done it time and again; and we’re going to do just fine," former Rep. Rick Boucher, D-Va., told us. "The first order of business for the new FCC should be a return to the bipartisan light regulatory oversight of broadband launched during the Clinton administration," said Boucher, honorary chairman of the Internet Innovation Alliance, in a statement. "The decision to treat broadband as an information service unleashed a wave of investment in internet infrastructure that enabled our communications network to become the envy of the world. That progress has been undermined by the Commission's decision to treat broadband as a telecommunications service with regulatory requirements designed for the monopoly era of rotary telephones. Few regulatory changes would do more to promote investment and a stronger U.S. economy than a return to the time-honored light regulatory regime for broadband.”

The Competitive Carriers Association will continue "to strongly encourage opportunities to further infrastructure investment and to ensure Americans have access to high-speed mobile broadband in rural and urban markets alike," said President Steve Berry. "Given that Trump got a lot of his votes from rural America," General Counsel Carrie Bennett said the Rural Wireless Association is hopeful the new administration would put more money into rural mobile infrastructure deployment. She said mobile broadband is critical to improving agricultural production and distribution to feed a growing population. "There's a lot of really cool farming and ranching technologies to make all that much more efficient and keep costs down," she told us. "Our rural carriers are very optimistic, given that Trump wants to put money into infrastructure and telecommunications.”

Priorities Remain

Two trade groups representing smaller telcos said their priorities won't change. "ITTA’s policy priorities will not be different than they would have been under President Clinton," emailed President Genny Morelli. "We’ll continue to fight to ensure a healthy environment for continued broadband investment as well as the expansion of competition in the provision of content to consumers. We’ll advocate for regulatory parity among all communications service providers and the elimination of unnecessary rules and regulations." Vice President Derrick Owens said WTA will fight "for a strong and sustainable universal service program ... that encourages and supports building and maintaining high-quality telecom networks, including broadband, in rural high-cost areas." NTCA said it looked forward to "working with the Trump administration and Congress to harness the enthusiasm and engagement of the rural voters" to find innovative broadband solutions for all Americans.

Public Knowledge Senior Vice President Harold Feld questioned whether congressional Republicans "will be nearly as interested in FCC 'process reform' and limiting the scope of FCC authority now that it is back in Republican hands." Beyond that, he said: "It's simply not possible to tell at this point whether Trump is going to lean more to traditional Republican rhetoric on deregulation as the most important goal, on some form of economic populism that would require more congressional investment in infrastructure, or some combination. We will also need to see whether Trump plans to have leadership on these issues reside in the Congress, in Commerce, or at the FCC.”

Free Press Policy Director Matt Wood, worried about the new president (see 1611090034), said he didn't know what to expect. "Trump's mix of irresponsibly deregulatory policies, coupled with his embrace of utter falsehoods and ignorance about how the Internet works, are alarming," he emailed. "Mixed in with all of that is a dash of genuine populism and concern for media consolidation -- yet that plays itself out in such utter hostility to journalists that it is hard to even fathom. ... Defending a free press, and providing a communications system that is affordable and open to everyone, is just as important now as ever."