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ZTE Not Part Of China Trade Talks, Will Not Be Let Off ‘Scot-Free’ If Export Ban Is Lifted, Kudlow Says

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WASHINGTON, May 21, 2018 — Finding a way to allow Chinese telecommunications equipment maker ZTE back into US markets is not part of the Trump administration’s ongoing trade talks with China and any solution will still punish the company for past actions, National Economic Council Director Larry Kudlow said Monday.

Kudlow described ZTE as “part of the landscape” and explained that it was an enforcement issue and not a trade issue before stressing that allowing the company to resume buying American-made electronic components would not mean leniency.

“If anybody thinks that any changes are going to let them off scot-free, they are wrong,” Kudlow said while speaking to reporters outside the west wing of the White House.

ZTE became an issue in US-China relations last month after the Commerce Department’s Bureau of Industry and Security issued an order denying ZTE the ability to export American-made products for seven years.

The ban was a response to misconduct by ZTE executives

In March, ZTE executives agreed to settle the sanctions violations by paying a $1.19 billion fine and accepting a suspended seven-year export ban to automatically take effect if it was found that the company violated any aspect of the settlement agreement or committed any more violations of American Export Administration Regulations.

Because the two major components in most mobile phones — Google’s Android operating system and radio chips made by San Diego, California-based Qualcomm — are made in the United States,  an export ban is a potential death sentence for the company.

But the Commerce Department imposed the ban after investigators discovered that company executives had made false statements and obstructed justice during negotiations to settle charges against the Shenzen, China-based company, formally known as the Zhongxing Telecommunications Equipment Corporation, for violating sanctions by selling telecom equipment to Iran and North Korea.

The Chinese company will still be subject to ‘large fines’

Kudlow emphasized that any deal with Beijing that allows ZTE to once again purchase American-made components needed for mobile phones will involve “large fines” and “huge compliance.

“My sense is you might be looking at some changes around the edges, but I don’t know,” Kudlow added before explaining that any decision will be up to Commerce Secretary Wilbur Ross.

Chinese telecom equipment makers like ZTE and Huawei have also long been considered security risks by the American defense and intelligence establishments, which fear that the Chinese government-owned companies insert backdoor that could be used for espionage into their equipment.

As a result, the Pentagon recently banned the sale of Huawei and ZTE phones in the subsidized retail stores located on military bases known as Post Exchanges, and the Federal Communications Commission also issued an order prohibiting Universal Service Fund dollars from being spent on gear from either manufacturer.

Still, Kudlow reiterated that the Trump administration is “aware of all that,” implying that even if the effort to find a solution — which he said stemmed from a request from Chinese President Xi Jinping — is successful, it would not mean ignoring any of the government’s concerns.

“We are aware of security issues, sanctions issues, technology theft issues, et cetera,” he said.

(Creative Commons Image: Chinese President Xi Jinping and his wife with President Donald Trump and Melania Trump at their Mar-a-Lago estate)

Andrew Feinberg is the White House Correspondent and Managing Editor for Breakfast Media. He rejoined BroadbandBreakfast.com in late 2016 after working as a staff writer at The Hill and as a freelance writer. He worked at BroadbandBreakfast.com from its founding in 2008 to 2010, first as a Reporter and then as Deputy Editor. He also covered the White House for Russia's Sputnik News from the beginning of the Trump Administration until he was let go for refusing to use White House press briefings to promote conspiracy theories, and later documented the experience in a story which set off a chain of events leading to Sputnik being forced to register under the Foreign Agents Registration Act. Andrew's work has appeared in such publications as The Hill, Politico, Communications Daily, Washington Internet Daily, Washington Business Journal, The Sentinel Newspapers, FastCompany.TV, Mashable, and Silicon Angle.

Broadband's Impact

CES 2022: Public-Private Partnerships Key to Building Smart Cities, Tech leaders Say

Public-private partnerships will increase the community benefit of infrastructure projects, leaders at Qualcomm and Verizon said.

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Panelists on the “Smart Cities and Public-Private Partnerships” CES session on Friday.

LAS VEGAS, January 12, 2022––Telecommunications industry leaders said Friday at the Consumer Electronics Show that public-private partnerships will pave the way to realizing the future of smart cities.

Raymond Bauer, director of the domain specialist group that connects governments to Verizon’s telecommunications services, said the government needs private partners to improve its infrastructure efforts.

Referencing the recent passage of the Infrastructure Investment and Jobs Act, Bauer said governments should look forward to partnering with private technology companies to improve upcoming infrastructure projects.

“There’s a once in a lifetime opportunity from IIJA,” Bauer said. “We should find common ways to work in a way we haven’t in the past. There are certain goals and use cases to leverage the infrastructure we have,” he said.

The $1.2 trillion bipartisan legislation funds physical and digital infrastructure projects, including $65 billion for the expansion of broadband across the country.

Bauer said communities have a chance to monetize the services Verizon offers to communities if Verizon builds infrastructure for broadband access in underserved areas. “By bridging the digital divide, underserved communities get the services they need,” he added.

Ashok Tipirneni, head of smart cities and connected spaces at Qualcomm, said that cities should be thinking about how technology can improve much-needed infrastructure projects.

“Cities are growing faster than available utility,” he said, citing global issues of housing, water, and equity for vulnerable populations. “How do we ensure access for all citizens? And how can cities be in lock step with new technology, whatever it is?” he asked.

Qualcomm’s Smart Cities Accelerator Program delivers internet of things ecosystem products and services to member cities and local governments.

“New Orleans, Miami, and Los Angeles has local governments asking how they can do better,” he said. “They offer opportunities for partnerships that wouldn’t have been the case a few years ago.”

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Broadband's Impact

Year In Review: Key Developments for Broadband’s Impact in the U.S.

This year saw a growing telehealth trend, federal digital inclusion efforts and greater attention to spectrum sharing.

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Photo of FCC Chairman Jessica Rosenworcel (left) in February 2020 from the Prince George's County Library used with permission

WASHINGTON, December 29, 2021–High-speed internet access has never seemed more essential than in the days of another year of the COVID-19 pandemic.

And that’s why, for the third in a three-part review of 2021, Broadband Breakfast focuses on broadband’s impact in enabling benefits through expanded internet access.

Telehealth takes center stage

Because the pandemic is continually forcing closures and stay-at-home orders, the expansion of telehealth services has become a critical, normalized service this year as remote health care is a safer, more efficient way to deliver high-quality care.

Broadband service is now important to maintaining overall health––experts have defined broadband services as a social determinant of health. Expanding telemedicine across rural and Tribal communities remain barriers to better health outcomes for vulnerable populations.

The pandemic prompted Congress to extend waivers that allowed patients to take advantage of telehealth services. Experts say the waivers encouraged the growth of telehealth systems, and that investment in telehealth is necessary to improving them.

Broadband access and affordability often restrict vulnerable communities’ ability to take advantage of telehealth services. This year saw massive investments focused on funding telehealth subsidies for patients in need.

In December alone, the Federal Communications Commission announced more than $42.7 million in COVID-19 Telehealth Program awards for health care providers spending on telecommunications information services and devices. The awards also reimburse health care organizations for innovative ideas that connect patients to quality care with broadband.

For example, the Westchester County Health Care Corporation in Valhalla, New York, was awarded $1 million for the purchase of remote monitoring software and video equipment, which will allow for the creation of a “tele-ICU” for the provision of remote care for hospitalized patients.

In October, a Senate subcommittee heard testimony that permanent regulatory flexibility allowing free or subsidized telemedicine services for patients would have  a positive impact on patient care. It may have a cost benefit too: FCC Commissioner Brendan Carr estimated that  widespread telehealth availability could save the health care system $305 billion a year.

The FCC’s new Affordable Connectivity Fund

The Federal Communications Commission served as an accelerator to better connect communities during the pandemic through its Affordable Connectivity Program. As families and students struggled to stay connected to work and school during the pandemic, the FCC has taken historic steps to assist families can’t afford to pay for internet service and devices.

Originally established as the Emergency Broadband Benefit, the Affordable Connectivity Program is the nation’s largest broadband subsidy program to ever be enacted. The Emergency Broadband Benefit was replaced by the Affordable Connectivity Program after the passage of the Infrastructure Investment and Jobs Act in November.

The Affordable Connectivity Program transformed the Emergency Broadband Benefit into a long-term program that provides discounts for families to purchase internet service and devices. Households can also receive discounts to purchase a laptop, desktop computer, or tablet for their home.

The Affordable Connectivity Program enrollment period opens on December 31, 2021, allowing families to start the new year with the opportunity to receive new devices for the home. However, a long-standing challenge has been informing the community about these benefits. Policy experts agree that these benefit programs are not reaching the intended audience.

A November report showed that areas with low broadband adoption are less likely to enroll in the program. “If leaders want to connect the unconnected, in addition to low income groups, other programs will be needed. EBB isn’t targeting these low-adoption communities,” said Will Rinehart, senior fellow at the Center for Growth an Opportunity.

FCC Chairwoman Jessica Rosenworcel agreed on the need for emphasizing outreach. “There was no funding to help a lot of these non-profit and local organizations around the country get the word out [about the program],” Rosenworcel said during a September event hosted by the Internet Innovation Alliance about the broadband affordability divide. “And I know that it would get the word out faster if we had that opportunity.”

Digital equity and inclusion

The past year was significant for its focus on digital equity and inclusion. The closing of many public institutions because of the pandemic has forced lower-income communities into isolation without sufficient devices or technology to stay connected, digital inclusion experts say.

Organizations such as the National Digital Inclusion Association have decried a type of discrimination known as “digital redlining” in which internet service providers discriminate in broadband deployment, maintenance, upgrade, or delivery of service in lower-income neighborhoods. Because communities of color are more likely to have slower and less reliable internet service, policy leaders have been active in finding solutions.

To combat this alleged practice, Rep. Yvette Clark introduced the Anti-Digital Redlining Act on July 30.  The bill finds that lower-income residents pay the same for DSL internet as fiber customers, while wealthier residents receive much better internet service. The text of the bill also acknowledges that disparities in internet access “impose significant costs” on the government to choose between “either offering non-digital means of interaction or excluding residents without access to high speed, reliable broadband access.”

If passed as federal law, the measure would require the FCC to ban digital redlining.

This year also saw the passage of digital inclusion-focused legislation as part of the recently-passed Infrastructure Investment and Jobs Act. The law allocated $2.75 billion to the Digital Equity Act, which establishes the federal definitions of digital inclusion and digital equity.

The Digital Equity Act’s two programs and three grant funds will supply money to the states in order to do digital equity work. For example, the Broadband Equity Access and Deployment program gives block grants to states for broadband infrastructure deployment and other digital inclusion activities.

Amy Huffman, policy director at the National Digital Inclusion Association, said that states are best prepared to promote digital equity for their residents. “The states are already in charge of so economic development workforce development health outcomes, etc. so they want the state to think holistically, about how they’re doing around digital equity will help them achieve their other goals.” By connecting all residents to quality devices and internet-enabled services, residents are better equipped to fully engage with the community and improve their quality of life.

Satellite broadband takes flight

Apart from the high-profile space launches this year, the broadband industry is both excited and skeptical about satellites playing a greater role.

In late 2020, the FCC voted to adopt rules making it easier for satellite providers to obtain licensing to deploy satellites faster. In February, Elon Musk’s SpaceX launched 120 Starlink broadband satellites on two February missions, bringing the total number of satellites to over 1,700.

Low Earth Orbit satellites, which can bring broadband to rural communities, could connect harder-to-reach communities faster than laying fiber. By May 2021, SpaceX announced it had over 500,000 orders for the Starlink service.

Other companies are also jumping into the satellite business: the FCC approved Boeing’s  request to launch 132 satellites for its broadband internet network, and Amazon’s satellite imitative Project Kuiper partnered with Verizon in October to launch an internet service for underserved and unserved communities.

However, these massive investments didn’t come without controversy. Apart from concerns about Starlink’s capacity to deliver long-term, high quality service that complies with IIJA, public telecommunications policy leaders say the 12 GigaHertz (GHz) band, the portion of spectrum that Starlink uses for its services,  should be shared with 5G operators to deliver internet to lower-income communities.

Research commissioned by RS Access in August concluded that the mid-band spectrum can be shared between 5G and satellite broadband operators and finding that the 12 GHz spectrum is “highly favorable for 5G,” and “can rapidly accelerate 5G deployment nationwide.”

Next year regulators and policymakers will continue the battle to determine who, if anyone, will have greater control over the 12 GHz band.

Will the ‘homework gap’ persist in a world of online education?

Last year’s initial COVID lockdown left many families unprepared and unconnected to devices or internet access and the “homework gap” persisted.

In fall 2021, many schools embraced a “hybrid” in-person, virtual schooling model. Around this time, Pew research found that lower-income parents were more likely to say their children did homework on a cellphone and could not complete homework because they did not have computer access at home.

Some students have been using public Wi-Fi because they could not connect reliably at home. The FCC’s Emergency Connectivity Fund was authorized to help close bring devices to students who lack them.

Originally launching in June as part of March’s American Rescue Plan Act, the FCC has committed $3.8 billion of the $7.17 billion program to provide funding for schools and libraries to buy equipment students to learn remotely.

The total amount committed to go to support 9,000 schools, 760 libraries, and 100 consortia for nearly 8.3 million connected devices and over 4.4 million broadband connections, the agency said last week in a press release. (See also Year in Review: Key Developments in Digital Infrastructure with Ramifications for Next Year.)

Last week, the FCC committed another $603 million in Emergency Connectivity funds to connect more than 1.4 million students across all 50 states.

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Health

Telehealth Has Potential to Shift Medical Focus to Preventative Care and Wellness

Experts say continued investment in telehealth is necessary to improve care systems.

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John Halamka, David Rice, Angela Moore, Jeffrey Neal and Peter Ku

WASHINGTON, December 24, 2021 – Medical experts say continued investment in telehealth systems expanded during the coronavirus pandemic has the potential to improve medicine’s focus on preventative care and wellness.

However, some concern exists over what will happen to telehealth advances made during the pandemic should Congress fail to renew waivers that allowed telehealth provision in government-aligned health programs such as Medicare.

Experts discussed this current juncture in telehealth at a Federal Communications Bar Association event last week.

They remarked on just how quickly telehealth systems were able to grow in the past two years because of Congress’ waivers and the major impacts revoking these waivers could have for these systems and the access of many individuals to healthcare.

A discussed example of virtual medicine’s growth was observed “exponential” increases in new overall patient engagement at Veterans Affairs medical providers through telehealth during some of the deadliest phases of the pandemic.

During a Senate hearing in October, witnesses such as Deanna Larson, president of Avel eCARE, testified that regulatory flexibility from Congress is necessary to address telehealth access, as well as that broadband affordability issues often prevent access to telehealth.

Witnesses also raised that telehealth’s prevalence would increase emergency room bed availability during the pandemic

At the FCBA event, Miller Nash attorney David Rice emphasized that beyond giving medical access to individuals that face obstacles in traveling to medical facilities for treatment, telehealth is simply more convenient than in-person treatment for almost everyone and allows patients to fit medical appointment attendance more easily in their schedules.

In terms of challenges robust telehealth systems would face going forward, Mayo Clinic Platform President John Halamka cited potential licensure issues for providing care, and some argument existed between Rice and Jeffrey Neal, T-Mobile for Government’s national director of federal sales, over whether data privacy issues are likely to be a serious hindrance to virtual treatment.

On Monday, the Federal Communications Commission announced $42.7 million in awards from its COVID-19 Telehealth Program which supports continued care for patients by reimbursing them for telecommunications services, information services and connected devices.

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