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Removing Chinese Telecommunications Equipment From U.S. Broadband Networks Would Cost More Than $1 Billion

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WASHINGTON, June 27, 2019 – When it comes to removing Huawei or ZTE telecommunications equipment from U.S. broadband networks, a strategy of “rip and place” would cost well over $1 billion.

Rural broadband carriers don’t have the budget for that, and they are concerned that the costs of a retrofit would delay the deployment of 5G wireless networks.

That was the message that multiple broadband providers – particularly rural entities – delivered to Federal Communications Commissioner Geoffrey Starks at a Thursday FCC workshop that had been framed as a discussion about network security.

Starks staked out a strong position against the use of Chinese telecommunications equipment in U.S. broadband networks, noting existing steps by the Trump administration to prohibit procurement of telecommunications equipment from Huawei and ZTE.

Starks convened the discussion at the agency, however, to address equipment that is already inextricable intertwined within U.S. networks.  “Network security is national security, and our interconnected networks are only as secure as their most vulnerable pieces,” he said.

The discussion applies to wired networks because equipment to run fiber-optic wires will be more instrumental in operating 5G networks than previous technologies. Mike Saperstein, vice president of policy and advocacy at US Telecom, said he is in support of federal risk management activities to “identify supply-chain threats.”

Others cited the distinction between trusting equipment and trusting suppliers. Much of 5G and 4G traffic will not necessarily pass through a network core, said Brian Hendricks, vice president of policy and government relations at Nokia. The radio layer of a mobile network has become a more vulnerable point of attack.

The issue of deploying 5G will fall “particularly hard” on small rural carriers in the United States, Hendricks said.

The only way to eliminate any risk would be to ban Chinese equipment entirely, said Jim Lewis, senior vice president and director for the Center for Strategic and International Studies. And such a “rip and replace” is not tenable, he said.

Moreover, he said, just as big American tech companies use Chinese components in their equipment, Chinese telecom depends on U.S. technological advancements.

And doing anything that would delay the deployment of 5G technology would ultimately hinder the economy.

Carri Bennet, general counsel at The Rural Wireless Association. Cited the figure of more-than $1 billion figure for replacing all Huawei and ZTE equipment. And attempting to replace network equipment while the network is still in operation could create service issues, including for public safety.

She suggested that it would be good to start with third-party monitoring of carrier networks.

“We should not be reliant on suppliers from adversarial nations to design manage and secure our critical infrastructure, especially as we develop cloud technologies,” said Travis Russell, director of cybersecurity at Oracle Communications. There is no finalized definition yet of what a stand-alone 5G network would look like, he said, so there is still time to “work out a solution” for this dilemma.

The FCC has a vital role in understanding the issues that small, rural carriers face, said Dileep Srihari, senior policy counsel at Telecommunications Industry Association.

Many rural providers lack the budget to replace banned equipment, said Jeff Johnston, senior economist at CoBank.

A “rip and replace” strategy to remove equipment that some have suggest is not secure would bear an “enormous” opportunity cost for rural carriers relying on Huawei for telecom infrastructure, said Christopher Reno, chief accounting officer at Union Telephone Company.

5G

Industry Praises FCC Proposal to Revamp the 5G Rural Fund

The FCC proposed adjusting the $9-billion budget allocated for the fund using updated maps

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Photo of FCC Commissioner Nathan Simington by Bonnie Cash from the Hill

WASHINGTON, September 26, 2023 – Industry associations are praising a proposal from the Federal Communications Commission Thursday to review coverage areas based on updated commission maps so that the 5G Fund can reach more communities without the wireless technology.

Thursday’s vote proposes to help dictate the eligibility requirements for areas in need of support of the 5G Rural Fund for America.

The commission proposed adjusting the $9-billion budget allocated for the 5G Fund, the optimal methodology for consolidating eligible areas into smaller geographic regions for bidding, the feasibility to extend 5G Fund support to qualifying regions in Puerto Rico and the U.S. Virgin Islands, possibly mandating cybersecurity and supply chain risk management plans for 5G Fund recipients, and the possibility of whether the 5G Fund should be utilized to encourage the deployment of Open Radio Access Networks.

“What this means is that as we develop the 5G Fund and build the successor to our existing universal service program supporting wireless networks in rural America, known as the Mobility Fund, we will be able to incorporate this detailed picture of where service is and is not,” FCC Chairwoman Jessica Rosenworcel said. “We will be able to see gaps in coverage and ensure support actually reaches the communities that need it most.”

Meredith Attwell Baker, president and CEO of industry association CTIA, praised the commission’s decision “for recognizing the crucial role that mobile wireless services play in keeping Americans connected.”

“Implementing the 5G Fund and using the FCC’s new maps will help extend the benefits of advanced 5G services to more communities and consumers,” she said.

Tim Donovan, president and CEO of the Competitive Carriers Association, also praised the decision, saying the 5G Fund “has been a top priority for CCA, and we will continue to work with the Commission and our members to ensure the final rules preserve and expand mobile broadband access to every American.”

The commission also adopted Thursday new regulations to expedite space applications, the availability of spectrum resources for space launches, old rules to combat robocallers, and handed down over $100 million in fines.

FCC space and spectrum allocations

The FCC unanimously ratified the Expediting Initial Processing of Satellite and Earth State Applications Space Innovation, which is the adoption of new rules to expedite its processing of space and earth station applications.

It also unanimously ratified new rules ensuring that commercial space launches have the necessary spectrum resources for reliable communication. These adoptions will “promote safety, competition, innovation, and continued American leadership in the new Space Age,” the agency said. The new rules will also provide an allocation within the 2025 to 2110 MHz band for ground-to-launch vehicle telecommand which is needed for space launch operations, and make “the entire 2200 to 2290 MHz band available for launch telemetry.”

“I believe that the most important part of streamlining the FCC’s application processing procedures is ensuring swift and efficient FCC action—which will maintain U.S. leadership in the satellite communications service industry. It will also nurture the growth of the broader space sector, which includes new and innovative manufacturing processes, robotics, earth surveillance and exploration and other future innovations,” Commissioner Nathan Simington said.

Robocallers losing access to phone numbers

The FCC also voted in favor of adopting rules that would modernize the commission’s requirements on how Voice over Internet Protocol providers get direct access to telephone numbers.

The adoption sets in motion parameters to limit access to “phone numbers by perpetrators of illegal robocalls, protect national security and law enforcement, safeguard the nation’s finite numbering resources, reduce the opportunity for regulatory arbitrage, and further promote public safety.”

In line with the Telephone Robocall Abuse Criminal Enforcement and Deterrence (TRACED) Act, the new rules will require applicants to submit additional disclosures and certifications in regard to their “ownership structures and compliance with the Commission’s rules and state law and takes targeted steps to address the concerns” that were raised in the rulemaking.

These rules consist of making robocall-related certifications that will help ensure compliance with the commission’s rules targeting illegal robocalls; to keep and disclose current information about ownership, including foreign ownership, that will alleviate the risk of providing violators abroad with access to U.S. numbering resources; guarantee their compliance with other commission rules that are applicable to interconnected VoIP providers including particular public safety and access stimulation rules, and requirements to submit timely FCC Forms 477 and 499 filings; and compliance with state laws and registration requirements that apply to businesses in each state where numbers are requested.

FCC fines Dorsher Enterprise $116 million

The FCC additionally adopted a $116,156,250 fine against the Dorsher Enterprise, a group consisting of Thomas Dorsher, ChariTel, OnTel, and ScammerBlaster.

The Commission’s investigation revealed that the group promoted themselves as a crusade fighting against scam robocalls at the same “illegally robocalling toll free numbers” and used credits from their scam “to fund telephony denial of service (TDoS) attacks on other entities.”

The parties in the group, which allegedly made nearly 10 million robocalls to generate toll free dialing fees, are jointly liable for the fine.

“Dorsher’s claim that he was actually trying to ‘shut down scammers’ is meritless in the face of these facts,” Commissioner Geoffrey Starks said. “As I have said repeatedly, there are numerous hurdles to finding these bad actors, and bringing them to account for violations of our rules. I am pleased to see another example of how, by working together, we can untangle these schemes and protect consumers.”

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Rural Mobile Providers Push FCC to Alter 5G Fund Model

If carrier receiving legacy federal funds lose at auction, they could leave areas ‘stranded,’ providers say.

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Screenshot of Carri Bennet, RWA's general counsel

WASHINGTON, September 14, 2023 – Rural mobile providers are urging the Federal Communications Commission to consider an alternative to the reverse auction funding model the agency proposed for a future 5G fund.

The fund has been in limbo since 2020 due to mapping issues. It makes $9 billion available for 5G mobile broadband infrastructure in areas unlikely to be served without subsidies.

With access to newer, granular data on mobile broadband coverage in the U.S., the FCC released on August 31 a notice proposing updates to the program’s methodologies for defining areas eligible for funding and seeking comment on potential new provisions like extending support to Puerto Rico and the Virgin Islands. The proposal is slated to be discussed at the agency’s open meeting on September 21. 

Ahead of that discussion, the Rural Wireless Association has met with FCC officials five times in the last month to reiterate the same concerns over the program’s reverse auction model. Under this procedure, providers would compete to develop the cheapest cost structure for serving an area with the minimum required speeds – at least 35 Mbps upload and 3 Mbps download in the case of the 5G Fund.

Rural providers are concerned because some areas served by carriers receiving support from legacy funding programs like the Mobility Fund will be eligible for auction. If those carriers lose at auction, the RWA says, the reduction in federal funds might make them unable to continue operating their infrastructure and leave other areas covered by their networks without service.

“There is no ‘safety valve’ put in place that would protect these networks built with federal dollars and maintained by legacy support mobile carriers,” the association wrote in an ex parte filing on Wednesday.

The RWA has proposed the commission seek comment on allowing these providers to opt out of the reverse auction if they are an area’s sole mobile carrier. In such a scenario, the group also wants the FCC to consider subsidizing 5G upgrades based on predicted costs.

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CTIA Report Says 5G Available in 54% of U.S., 35% of Korea and 27% of China

The wireless association says 5G will add $1.5 trillion in GDP and 4.5 million in new jobs over 10 years.

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Illustration from CTIA–The Wireless Association

WASHINGTON, July 14, 2023 – A report by wireless trade association CTIA showed that the United States is making strides towards 5G development, and that the wireless standard is expected to add $1.5 trillion in GDP and 4.5 million of new jobs over the next decade.

Breaking the benefit down by geography, the study showed that 5G has contributed $139 billion to GDP growth in New York City, $65 billion to the Seattle area, $43 billion to Dallas, and $20 billion to San Diego.

The United States has emerged as a frontrunner among its global counterparts in terms of 5G availability, according to CTIA, with 54% coverage. This percentage appears to position it ahead of South Korea by nearly 20 percentage points, while surpassing China’s rate of 27% and more than three times the United Kingdom’s rate of 17%.

The report draws upon a 2021 study by BCG, 5G Promises Massive Job and GDP Growth in the U.S., February 2021, and supplements additional numbers sourced to prior CTIA reports. The trade group attributed the $275 billion of investment by service providers on infrastructure buildouts and enhancement. About $35 billion was spent in  2021.

5G’s faster deployment rate, increased consumer adoption, and superior performance compared to its 4G predecessor make it a key player in bridging the digital divide and mitigating climate change and strengthening national security, CTIA said.

Despite the progress made, the report reiterated the need to obtain more licensed mid-band spectrum to enable network expansion.

“This required a coordinated effort, starting with Congress re-establishing the Federal Communications Commission’s auction authority and auction pipeline,” urged the report.

The commission’s authority to license spectrum has expired in March and has not been renewed.

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