Daily Digest 3/7/2018 (FCC Reform Bill Passes House)

Federal Communications Commission Chairman Ajit Pai proposed to direct approximately $954 million toward restoring and expanding communications networks in Puerto Rico and the US Virgin Islands—networks that were damaged and destroyed during the 2017 hurricane season. Specifically, he proposed to create a $750 million Uniendo a Puerto Rico Fund (Bringing Puerto Rico Together Fund) and a $204 million Connect USVI Fund. Each of these funds would provide additional short-term assistance for restoring communications networks in the aftermath of Hurricanes Irma and Maria and longer-term support for expanding broadband access throughout the islands.

The plan includes:

• An immediate infusion of approximately $64 million in additional funding for shortterm restoration efforts.
• A proposal to allocate approximately $631 million in long-term funding for the restoration and expansion of fixed broadband connectivity in Puerto Rico and the US Virgin Islands.
• A proposal to allocate approximately $259 million in medium-term funding for the restoration and expansion of 4G LTE mobile broadband connectivity in Puerto Rico and the US Virgin Islands.
• The immediate conversion of the advanced funding the Commission provided last year to carriers in Puerto Rico and the US Virgin Islands into new funding by declining to offset that advanced funding against future universal service support payments.

The Washington state network neutrality law marks the beginning of what analysts say could soon become a massive headache for Internet service providers (ISPs): a jumbled mix of state and federal rules that may be looser in some places and tougher in others. “One of the fears of Internet service providers is a patchwork of different state regulations,” said Jeff Kagan, an independent telecom analyst. “It’s much easier to manage and work from one national set.” “As we have cautioned repeatedly, we simply cannot have 50 different regulations governing [broadband],” said USTelecom, a major trade association for Internet providers. “It’s time for Congress to step up and enact legislation to make permanent and sustainable rules governing net neutrality.”

For all the fire and fury over network neutrality, the debate is increasingly irrelevant. No matter how it is resolved—if it is ever resolved—it will have little real-world impact. Because while we are mired in an intractable squabble, technology and the issues we must face are swiftly moving on. Net neutrality policy does not remotely address the issues companies and consumers are facing today and likely will face in the future. US policymakers and regulators around the world need to pivot and focus collectively on how to craft a contemporary regulatory framework that nurtures healthy internet growth and addresses the growing list of concerns that truly impact our citizens.  Powell said issues like data privacy, technology addiction, fake news, cybersecurity and market power all impact consumers and must be part of the policy discussion. He offered five general principles that can guide a more holistic regulatory framework:

1. Reaffirm the inter-dependent nature of the internet ecosystem
2. Promote infrastructure growth
3. Subject tech companies to greater scrutiny
4. Reinvigorate antitrust and competition policy and apply it fairly
5. Secure and protect the internet

The Federal Communications Commission is scheduled later in March to vote on new rules designed to smooth the deployment of small cells for LTE and 5G, primarily by reducing fees local governments and other entities can levy against those buildouts. And, according to a variety of wireless players, those fees are “excessive,” to say the least. “CTIA’s member companies and others in the wireless industry have put forth various examples of the significant costs associated with compliance with the NEPA [National Environmental Policy Act] and NHPA [National Historic Preservation Act] requirements imposed under the Commission’s rules,” wrote wireless industry trade group CTIA in a recent filing to the FCC on the topic. “For example, Sprint recently reported that the total costs it incurred for Tribal review of small cells over the last two years exceeded $23 million. Verizon estimated that NEPA and NHPA reviews, including Tribal reviews, comprised, on average, 26 percent of its total small cell deployment costs in 2017. And AT&T recently predicted that it will spend roughly $45 million this year on NEPA and NHPA compliance—resources that could otherwise have been directed toward broadband deployment.”

White House counselor Kellyanne Conway violated the Hatch Act on two occasions, the Office of Special Counsel (OSC) informed the Trump administration.  Appearing in her official capacity, Conway endorsed and advocated against political candidates, the watchdog said, referring its findings to President Donald Trump "for appropriate disciplinary action."

The violations occurred during two television appearances in 2017, one on Fox News's "Fox and Friends," and one on CNN's "New Day." “While the Hatch Act allows federal employees to express their views about candidates and political issues as private citizens, it restricts employees from using their official government positions for partisan political purposes, including by trying to influence partisan elections,” OSC says in its report. “Ms. Conway’s statements during the "Fox & Friends" and "New Day" interviews impermissibly mixed official government business with political views about candidates in the Alabama special election for U.S. Senate." 

As the United States and China look to protect their national security needs and economic interests, the fight between the two financial superpowers is increasingly focused on a single area: technology. The fight over technology is redefining the rules of engagement in an era when national security and economic power are closely intertwined. China, under President Xi Jinping, has launched an ambitious plan to dominate mobile technology, supercomputers, artificial intelligence and other cutting-edge industries, putting huge resources behind an effort that it considers crucial to the country’s government, military and economy. Beijing wants to build its own technology champions and is encouraging companies to acquire the engineering, expertise and intellectual property from big rivals in the United States and elsewhere. The aggressive push has set off alarms in Washington, with policymakers and lawmakers fearful that American giants could lose their edge. President Donald Trump is now building up the country’s defenses, as the government investigates potential violations of American intellectual property rights and intensifies scrutiny of overseas deals.