Wicker Sees STELA as Must-Pass; Administration Eyes 5G, Killer App

STELA recertification, like privacy legislation, is a “must-pass” issue “in my view,” Wicker said. He and other Senate Commerce members said during a Wednesday hearing they're open to passing a federal privacy law stronger than California’s (see 1902270048).

“I may be meeting with a group of people this afternoon who would just as soon that [STELA] expire," Wicker said. "We'll listen about that." STELA expires at year's end “unless we reauthorize it, and I would expect a majority” of Senate Commerce members “would be in favor of moving something to [President Donald Trump's] desk in that regard,” Wicker said. His office didn't comment on who Wicker was meeting. Broadcasters affiliated with NAB were known to be meeting with lawmakers Tuesday and Wednesday about their legislative priorities, including against renewing STELA (see 1902260071).

“It would be nice if” Congress could pass compromise net neutrality legislation, but “I don't know if we'll get there this year” given partisan divisions on that issue, Wicker said. “I don't view open internet legislation as something we absolutely have to do.” There appears to be agreement that “we're all for an open internet” and “I hope we can agree that we don't need rate control by the federal government,” as critics of the FCC's rescinded 2015 rules contend was a potential byproduct of reclassifying broadband as a Communications Act Title II service, he said.

A good consensus would involve a bill that doesn't include Title II and “gives the light-touch approach that balances proper regulatory oversight [of] broadband internet … but keeps a climate where the technological innovation that has transformed a generation can continue,” Wicker said. House Commerce Committee Republicans introduced a trio of net neutrality bills, all of which have received less-than-enthusiastic responses from members of the new Democratic majority (see 1902220001).

5G

“I do not know” if “there will need to be legislation” aimed at ensuring U.S. dominance of 5G development but much is “likely to be done from a regulatory basis,” Wicker said. “From talking to [National Economic Council Director] Larry Kudlow [Tuesday], the economic advisers” in the Trump administration “understand how important this is. We're concerned” about how Chinese telecom equipment manufacturers Huawei and ZTE will shape 5G development. Trump's recent comments about 5G and the two Chinese companies caused confusion about his future policy moves (see 1902210057 and 1902220066).

The executive branch is focused on spurring 5G as an economic growth engine, though it's unclear what the killer app will be, administration officials told Incompas. They said the administration is intent on freeing up more spectrum, promoting broadband overall, addressing problematic Chinese trade practices and global supply chain issues, finding balanced cybersecurity and privacy solutions, and encouraging next-generation technologies.

The "trillion-dollar question is, what does 5G mean exactly," said Kelsey Guyselman, White House Office of Science and Technology senior policy counsel. She said the administration wants to foster an ecosystem to enable innovation, investment and infrastructure deployment "building blocks" to create a robust next-gen wireless network. "What exactly that will look like, I think is still a question to be determined, and how it would be used," Guyselman said. "Let's make sure that all the pieces are in place so that innovators can take advantage of a whole portfolio of spectrum holdings, for example; making sure we have low-, mid- and high-band spectrum available; that we have licensed and unlicensed; that we have a good mix of all the different technologies."

"We're still at the early stages of 5G," said Earl Comstock, Commerce Department deputy chief of staff and director of policy. He used to run Incompas' forerunner. "We definitely see the deployment of 5G networks as critical to maintaining American leadership and jump-starting the industries of the future." He said China has many 5G advantages because its command economy can focus resources and mandate actions, though the U.S. has more innovation and competition. The U.S.' challenge is that deployment is driven by carrier financial expectations, and lack of killer applications or services raises questions about new revenue streams, he said.

Spectrum, infrastructure, applications, and security and standards are key elements of 5G strategy, Guyselman said. Trump directed the Commerce Department to develop a plan for a national spectrum strategy that's due in July. "We're really excited to see what's in there," she said. Guyselman noted related reports looking at R&D priorities, the impact of emerging technologies, agency current and future spectrum uses, and FCC and NTIA efforts to repurpose spectrum and make it commercially available.

China-US Issues

The administration is focused on stopping Chinese intellectual property theft, including forced technology transfers by U.S. companies, Comstock said. He's "optimistic" there will be a new trade agreement with China, but it will depend on China accepting "reasonable terms" and has to be enforceable. He said the U.S. is trying to convince China it needs to "play by the rules" as it increasingly files for patents.

IoT technology and the global supply chain create "lots of opportunity for mischief," Comstock said. He said cybersecurity and privacy safeguards must be built into business plans. Guyselman said the administration is trying to find the "right balance" in both areas, promoting industry innovation while protecting cybersecurity and consumer privacy. "There are a lot of moving pieces and there's not an easy answer" on privacy, she said. Cybersecurity is "top of mind," and the administration, Congress and FCC are looking at ways to address supply chain concerns, she said.

China has a "massive advantage" on artificial intelligence, Comstock said. It doesn't worry about privacy and can collect all the data it wants from its own networks and probably U.S. networks, he added.

NTIA is developing standards for sharing citizens broadband radio service spectrum, Comstock indicated. "That'll be coming out hopefully sometime fairly soon," he said. "That's a process that we need to get right, because if we're successful ... it's going to free up a lot of spectrum."

Broadband

A U.S. rural broadband initiative grew out of an interagency task force whose discussions "kept coming back to one thing: we need more broadband," Guyselman said. "Internet connectivity in rural America is a huge problem. The digital divide is real." She said 22 agencies are tasked with helping boost broadband by coordinating federal funding, streamlining permitting processes for using federal property, and leveraging federal assets. She noted the Interior Department has identified and mapped 2,000 sites, many on Western lands, for infrastructure siting; the Department of Agriculture's $600 million ReConnect e-connectivity pilot program will start distributing grants and loans this year; and the General Services Administration wants to develop a single federal siting form for use across agencies.

The FCC's broadband deployment focus is good, but USTelecom's petition for ILEC relief from discounted network-sharing duties would "strike a blow" against competitive fiber, said Sonic Telecom CEO Dane Jasper. Granite Telecom General Counsel Michael Galvin said there isn't enough competition to justify ILEC relief and he's "hopeful" of FCC resistance, given pushback by competitors and their customers. He also voiced concern about a GSA three-year delay (to 2023) in transitioning federal agencies to next-gen telecom contracts, a process he said also affects state and municipal contracts.

There's some local government "hesitancy" after recent FCC actions to streamline local broadband deployment processes, said Victoria Lamberth, ZenFi Networks chief revenue officer. Cities with good processes, such as New York, appear to be digesting the impact, she told us afterward.

FCC 2014 E-rate rules to promote school and library fiber deployment "have been a little clunky in the rollout," said John Windhausen, Schools, Health & Libraries Broadband Coalition executive director. He said parties looking to string extra strands of fiber to serve the broader community have run into cost-allocation issues in Universal Service Administrative Co. reviews. He said Chairman Ajit Pai told him the FCC will undertake new E-rate actions later this year. Windhausen anticipates a rulemaking on extending "category 2" support for Wi-Fi and other internal connections beyond funding year 2019.

Incompas Notebook

Ex-FCC Commissioner Mignon Clyburn will lead an Incompas campaign "to focus on boosting technology innovation and inclusion in America's heartland," the group announced. Clyburn will be a "messenger" to tell "great stories" of broadband connectivity to policymakers and others, CEO Chip Pickering told the audience. Technology is a great equalizer but needs to be ubiquitous, Clyburn said. Noting their different party affiliations, both seek bipartisan solutions.