NTIA Administrator Alan Davidson said during a Thursday Broadband Breakfast event he intends to resign Jan. 20, declaring the day President-elect Donald Trump is set to return to office as the end of his leadership of the agency. FCC Chairwoman Jessica Rosenworcel plans on leaving the same day (see 2411210028). Sen. Marsha Blackburn, R-Tenn., and some other event participants predicted potential changes in NTIA’s $42.5 billion BEAD program once Republicans have unified control of government upon Trump’s inauguration, but suggested it’s less clear how spectrum policymaking may change next year.
Senate Commerce Committee ranking member Ted Cruz, R-Texas, during a Wednesday Communications Subcommittee hearing criticized FCC Chairwoman Jessica Rosenworcel’s draft declaratory ruling last week finding that Communications Assistance for Law Enforcement Act Section (CALEA) Section 105 requires telecom carriers to secure their networks against cyberattacks (see 2412050044). Republican FCC Commissioner Brendan Carr, President-elect Donald Trump’s pick to become chairman Jan. 20, told reporters Wednesday he believes the commission’s response to the Salt Typhoon Chinese government-affiliated effort at hacking U.S. telecom networks (see 2411190073) should focus on continuing to “closely” coordinate with other federal cyber-related agencies and identify vulnerabilities to the private sector.
Communications industry lobbyists told us they expect President-elect Donald Trump to soon follow his pair of Tuesday night FTC selections (see 2412100073) with a nominee for the FCC seat Chairwoman Jessica Rosenworcel plans to vacate Jan. 20. The lobbyists mentioned Arielle Roth, telecom policy director for Senate Commerce ranking member Ted Cruz, R-Texas, as the apparent front-runner for the nomination, though the Trump team hasn’t yet made a final decision. Trump said Tuesday he’s picking Republican FTC Commissioner Andrew Ferguson as permanent chair of the commission and will nominate Mark Meador, a former antitrust staffer for Senate Antitrust Subcommittee ranking member Mike Lee, R-Utah., to the commission seat that Chair Lina Khan currently holds.
The prospects for achieving broadcast ownership deregulation are “better than at any point in the recent past” under the incoming administration of President-elect Donald Trump, said Nexstar CEO Perry Sook in a Q&A during the UBS Global Communications Conference. Sook said Monday he expects a congressional effort will scrap the 39% broadcast ownership cap and implement internal FCC changes that will ease rules on broadcasters within the first six months of the new administration. Incoming FCC head and current Commissioner Brendan Carr “gets it,” Sook said. “We've been in contact with him, and will continue to be in close contact.” Sook said that Carr’s repeated statements on taking away broadcast licenses and holding broadcasters to a public interest standard are aimed at NBC, CBS and ABC. “I think there is some animus or frustration with some of the networks for some of their content decisions.” However, Sook downplayed the threat. “FCC chairmen can't really unilaterally revoke licenses,” he said. “Now you can use your pulpit to commence hearings ... and ... make people's lives more expensive and more difficult, but unilaterally removing licenses is not really within the cards.” Along with Carr, Sook said Nexstar discussed deregulation with Sen. Ted Cruz, R-Texas, and Speaker of the House Mike Johnson, R-La. Unlike previous pushes to change the national cap, the broadcast TV groups support completely removing it this time, Sook said. “The industry itself is united around the need and not divided as to what the right number is.” Carr could spur TV market consolidation simply by signaling that waivers allowing top-four duopolies would be more liberally granted, Sook said, adding it’s a move he could make without a majority at the commission. Sook is also looking to Carr to eliminate the simulcast requirement for the ATSC 3.0 transition and establish a date certain to end ATSC 1.0. “We are spending time working with both the legislative and the executive branch to try and affect these changes.”
House Health Subcommittee Chairman Brett Guthrie, R-Ky., cited work to “beat China” and “protect our children online” Monday night as among his Commerce Committee priorities for the next Congress after the House Republican Steering Committee said earlier in the afternoon it selected him as the panel's next chairman (see 2412090072). Guthrie prevailed in the Commerce gavel race over current Communications Subcommittee Chairman Bob Latta, R-Ohio, who is term-limited out of that role at the end of this Congress. The full House GOP conference still must sign off on Guthrie’s selection, but this is typically a formality. Guthrie said Monday night he is “honored that my colleagues have selected me to serve as” the next Commerce chairman. He plans to “work alongside” President-elect Donald Trump, House Speaker Mike Johnson of Louisiana and other GOP leaders to “deliver on our America First agenda.” A Congressional Spectrum Caucus co-chair and a past House Communications member, Guthrie said earlier this year an airwaves legislative package would be a top priority if he became Commerce chairman, and it didn't already pass this year (see 2404110059). Guthrie also backs a Universal Service Fund revamp (see 2411270060). Retiring House Commerce Chair Cathy McMorris Rodgers, R-Wash., praised Guthrie's “leadership, determination, and policy acumen.” She is “confident that he will rise to this historic moment of unified Republican control of government to deliver on issues and policies at the forefront of powering our economy,” including on tech issues. Latta also applauded Guthrie, as did several communications industry groups. USTelecom CEO Jonathan Spalter said Guthrie’s “leadership and dedication to expanding broadband access have been instrumental in connecting communities across the nation.” As Commerce chairman, Guthrie “will bring focus and common sense leadership as we work together to advance our shared goal of universal connectivity,” Spalter said. NTCA CEO Shirley Bloomfield said Guthrie “understands firsthand the needs of rural communities and the benefits of connectivity for commerce, education and healthcare in these areas.” In a statement, Competitive Carriers Association CEO Tim Donovan praised Guthrie for being “a longtime leader on spectrum, security and rural connectivity issues.”
AT&T CEO John Stankey anticipates a pro-growth administration and FCC with the inauguration of Donald Trump in January. During a UBS financial conference Tuesday, Stankey noted a “pro-investment dynamic” in Trump’s first term. Cutting taxes “worked” and led AT&T to make record investments in its network. Stankey said he knows Brendan Carr, tapped to lead the FCC next year, and expects him to be aggressive on making more spectrum available for carriers and on other issues important to AT&T. “He believes markets solve a lot of problems,” Stankey said of Carr: “Certainly, he's fairly public with his point of view.” AT&T plans accelerating its push to replace copper lines with updated technology, he said. “We've been working on filing in certain wire centers to show that we can move completely off of legacy technology and meet the needs of customers with newer technologies.” He added, “I'm comfortable we're moving into this at the right time.” The current FCC hasn’t opposed to the transition, “they've just been cautious,” Stankey said. Chris Sambar, a former AT&T executive, said in May the company spends $10 billion annually maintaining millions of miles of copper wires, of which only 5% remain in use (see 2405210059).
Commerce Secretary Gina Raimondo warned Saturday that “rhetoric” on China is no substitute for the hard work of making the U.S. a stronger competitor in areas like semiconductor chips, which are critical to the U.S. wireless and other industries. “Today, more than ever, national security requires technological security, requires the United States to lead … all of our competitors in technology, particularly in AI and semiconductors, and requires secure supply chains,” she told the Reagan Defense Forum in California. Raimondo was asked about President-elect Donald Trump's comments, made during the campaign, that he opposes subsidies in the Chips and Science Act of 2022 and that the act was a bad deal for the U.S., Responding to calls for overturning the act, Raimondo said, “It’s a horrific idea. It’s a reckless idea. ... Sometimes you say things on the stump, and I can only hope that was something to be said on the stump and won’t be acted out.” In November, House Speaker Mike Johnson, R-La., noted interest in having the House repeal the Chips Act but reversed course following a bipartisan outcry (see 2411040062). Raimondo noted that 100% “of leading-edge chips used in fighter jets, AI technology, nuclear simulation, drones” are made in China and Taiwan. By the end of the year, the department expects to complete $35 billion of the $39 billion allocated in awards to 26 companies to build plants in the U.S. In addition, it expects it will award nearly all $11 billion targeted for research funding. “We’re getting the job done,” she said. "It has been brutally difficult.” Taiwan’s TSMC makes 100% of the world’s most sophisticated chips and people said the company would never expand in the U.S., Raimondo said: “Wrong -- they’re doing it” and TSMC is building three facilities in Arizona. “It’s an incredible thing, and you’re all safer because of it.” Raimondo said ultimately the U.S. will need to invest more to compete with China. She noted that China is now building 21 semiconductor factories. Permitting reforms are critical, she noted. “It can’t take two years to go through permitting in order to build a factory -- that is not competitive."
Senate Armed Services Committee ranking member Roger Wicker, R-Miss., and some other congressional leaders are objecting to a compromise version of the FY 2025 National Defense Authorization Act (HR-5009) released Saturday night with language allocating $3.08 billion to fully fund the FCC’s Secure and Trusted Communications Networks Reimbursement Program (see 2412070001). The leaders’ concerns complicate plans for HR-5009's passage. House leaders are eyeing a vote on the measure this week. Meanwhile, some lawmakers want to attach the AM Radio for Every Vehicle Act (HR-8449) and permanently lift some telehealth restrictions via other end-of-year measures.
President-elect Donald Trump said Tuesday night he’s naming Republican FTC Commissioner Andrew Ferguson as permanent chair of the commission when he takes office Jan. 20 and will nominate Mark Meador, a former antitrust staffer for Senate Antitrust Subcommittee ranking member Mike Lee, R-Utah., to the commission seat currently held by Chair Lina Khan. Both moves were expected. Khan’s current term expired Sept. 26, meaning she would have needed renomination to another term to remain at the FTC. Ferguson has been a commissioner since earlier this year.
The Ukrainian Congress Committee of America (UCCA), which has complained to the FCC about SpaceX's alleged conduct in the Russia-Ukraine War, is now raising concerns about the company's environmental impact and CEO Elon Musk's role in President-elect Donald Trump's incoming administration. In a petition to deny last week filed with the FCC Space Bureau, UCCA said the agency has a legal responsibility to consider whether there needs to be an environmental assessment or impact statement done for large constellations as part of its review of proposed launches of Starlink satellites from SpaceX's Texas launch site. "More satellites and launches lead to more polluting, soot, gases and metals in the Earth’s atmosphere," it said. UCCA urged the agency to refrain from any further authorizations to Starlink for satellites, frequencies or capacity absent an environmental assessment/ impact statement and before SpaceX shows that further launches of its rockets won't cause environmental harm around the launch site. In a separate motion for stay, UCCA said Musk's role as co-head of the Trump administration's Department of Government Efficiency, while also running SpaceX, violates the Federal Advisory Committee Act by creating a conflict of interest or the appearance of one. It called on the agency to stop processing all SpaceX applications and requests until any conflicts of interest are addressed. Given Musk's companies' dealings with the federal government -- both as regulatees and as suppliers -- having him in charge of DOGE "is equivalent to allowing a fox to guard the henhouse," the group said. SpaceX didn't comment Friday. The Ukrainian-American organizations' umbrella group petitioned the FCC in April seeking an investigation of whether SpaceX should lose its licenses because it allegedly disabled the Ukrainian military's use of Starlink while allowing its use by Russia (see 2404240019). Space regulatory experts don't expect the agency to start requiring environmental reviews of satellite systems anytime soon (see 2409200008).