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EU Seeks to Trust-Bust Amazon, Biden’s Agenda on Tech Innovation and Research, China Wins Some Aspects of 5G Race

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Photo montage from the Financial Times

The European Union on Tuesday charged Amazon with antitrust violations for abusing the size and scale of its online platform to entice small merchants to sell on Amazon, use nonpublic data to spot popular products, and then sell the products at a lower price.

Amazon, which denies any wrongdoing, now has the chance to respond to these preliminary charges. Indeed, they could be dropped if a settlement is reached; although more charges could also be added.

The EU has spent two years investigating Amazon, with allegations based on data from more than 80 million transactions and 100 million products. They are also investigating Amazon’s “Buy Box,” a feature that allows customers to make purchases more quickly.

EU authorities in Brussels have argued that Amazon uses bundling, app fees, and hoarding data as tools in its anticompetitive arsenal.

Margrethe Vestager, European Commission vice president, has argued that companies like Google, Facebook, and Amazon are essentially micro-economies that set rules and policies with little transparency and determine the fate of millions of other businesses that are can’t help but follow along.

Information Technology and Innovation Foundation focuses on Biden’s approach to R&D

President-elect Joe Biden is likely to increase spending, regulation, and multilateralism in technology, regulation, and trade, according to an analysis by the Information Technology and Innovation Foundation (PDF) published on Monday.

Biden has called for increases in public investment in education and training, rural broadband, closing digital divide, more research and development and clean energy. These areas have lacked investment for decades, according to the report.

Biden proposed energy funding as part of a $300 billion overall expenditure for research and development over four years. He has said he wants the U.S. to achieve net-zero emissions by 2050 and to decarbonize its electricity grid by 2035.

The new administration will likely face pressure from progressives to increase business taxes and impose strict regulation on the information communication and technologies sectors. The burdens of this policies could outweigh the benefits of increased public investment in innovation, said ITIF.

The administration is likely to reverse some of the Trump administration’s regulatory roll-backs and urge Congress to undertake significant legislative reform of competition authorities for antitrust enforcement, especially of large tech platforms. At the same time, he will likely step up enforcement and bring more federal antitrust cases.

China has won 5G battle in coverage and advancement

The Wall Street Journal reports that China has won the 5G battle in coverage and advancement.

So far China has more 5G subscribers in total and per capita than the United States, as well as more smartphones, at lower prices, with better coverage, said Wayne Lam, director of research at CCS Insight.  On average, Chinese 5G devices cost $458, in the second quarter of this year, compared to $1,079 in the U.S., according to Canalys.

While the United States has some areas with 5G faster than China running on millimeter wave frequencies in hot spots by stadiums, Chinese coverage is more ubiquitous and consistent.

Edison Lee, a Hong Kong-based telecom analyst at investment bank Jefferies, said that China is further ahead in build out. China currently has 690,000 5G base stations open and operational across the country, while the U.S. has only 50,000, according to Handel Jones, chief executive of International Business Strategies Inc., a research firm.

China’s lead could be attributed to the aggressive targets Bejing has set for Huawei, ZTE, and in smaller part Ericsson, which attributed their 7 percent rise in revenue to their Chinese contracts in the third quarter.

While China may be ahead in coverage, their network only covers 8 percent of the population and is slower than networks in places like Switzerland and South Korea.

China is also in the midst of rolling out 5G’s life changing applications such as self-driving cars and remote surgeries, however their lead in fiber-optic infrastructure deployment could set them ahead in those areas as well.

Broadband Roundup

Senate Bill Would Alter Google Advertising, DOJ Cybersecurity Policy Reversal, Comcast on Hybrid Fiber-Coax

Senate introduces bill breaking up Google’s digital advertising business

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Photo of Sen. Mike Lee, R-Utah, from March 2016 by Gage Skidmore used with permission

May 20, 2022 – On Thursday a bipartisan group of senators on the Judiciary Committee introduced a bill that would force Google to break up its industry-leading online advertising exchange.

The Competition and Transparency in Digital Advertising Act would prohibit large companies like Google from both operating an ad exchange and a supply- or demand-side platform, should they process more than $20 billion in ad transactions.

The bill would also require Facebook to divest some of its advertising business.

“Companies like Google and Facebook have been able to exploit their unprecedented troves of detailed user data to obtain vice grip-like control over digital advertising,” said bill sponsor Sen. Mike Lee, R-Utah.

In late 2020, a coalition of 10 state attorneys general brought a lawsuit against Google alleging that its market dominance lets it overcharge businesses seeking to place ads online.

Justice Department changes directions on cybersecurity prosecution policy

On Thursday the Department of Justice announced it would reverse its charging policy on a federal computer fraud law, saying it will not prosecute “good-faith security research” efforts.

The change by the department relates to the Computer Fraud and Abuse Act, defining good-faith research as “accessing a computer solely for purposes of good-faith testing, investigation, and/or correction of a security flaw or vulnerability” without any intention of harming the public.

Last year, Georgia police sergeant Nathan Van Buren was successful in appealing his conviction under the CFAA to the Supreme Court.

DOJ argued that he should not have taken a bribe to access a woman’s license plate information during a 2015 Federal Bureau of Investigation sting operation, while Van Buren claimed that he had legitimate access to the database.

Comcast plans to release hybrid fiber-coaxial multi-gig speeds in the coming months.

Comcast is preparing to roll out faster multi-gigabit speeds across its hybrid fiber-coaxial network, Fierce Telecom reported Thursday.

Multi-gig rollout is expected in the coming months.

At an investor conference Comcast CEO Dave Watson stated that his operator’s choice to roll out mid-split upgrades on the way to Data Over Cable Service Interface Specification 4.0 technology will allow it to take speeds to the next level.

“We have a very fast, very efficient path to multi-gig symmetrical at scale that we can do,” said Watson.

He feels comfortable that despite Comcast fiber deployments in select locations, the company feels comfortable that its HFC network will remain competitive.

He also reiterated previous comments that fixed wireless access service is not a threat and that it does not materially impact churn from fixed wireless competitors.

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Broadband Roundup

AT&T and DISH Agreement, FCC Adds More States in Robocall Fight, $50M from Emergency Connectivity Fund

Dish said its customers will now have access to AT&T’s gigabit fiber services.

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Photo of FCC Chairwoman Jessica Rosenworcel

May 19, 2022 – On Wednesday, AT&T and Dish Network announced an internet distribution agreement in which Dish customers will have access to AT&T internet services, including its gigabit fiber services.

“Adding AT&T Internet to our robust lineup of TV and home integration services enhances our ability to provide better overall service, technology and value to our customers,” Amir Ahmed, executive vice president of DISH TV, said in a press release.

“At AT&T, we’re constantly thinking of ways we can better serve and provide for our customers. Through this new arrangement with DISH, we’re able to do just that by seamlessly offering our super-fast broadband services to more customers across the nation,” said Jenifer Robertson, executive vice president and general manager of mass markets at AT&T Communications.

“This is another step towards our goal of becoming the best broadband provider in America,” said Robertson.

FCC adds more state partners to tackle illegal robocalls

The Federal Communications Commission announced Thursday new partnerships with nine additional state attorneys general to combat illegal robocalls.

The agency said Iowa, Florida, Louisiana, Maine, Massachusetts, Mississippi, Nevada, New Hampshire, and South Carolina have all signed on to help with robocall investigations.

That raises the number of states that have signed a memoranda of understanding with the FCC to 36, after the agency last month signed on a handful more states for the initiative. The agency has already credited at least one state with helping it nail one suspected robocall violator.

As part of the agreement, the parties will “share evidence, coordinate investigations, pool enforcement resources, and work together to combat illegal robocall campaigns and protect American consumers from scams,” according to the FCC.

“We are better positioned to help protect consumers from scammers than ever before,” said FCC Chairwoman Jessica Rosenworcel. “Together we are stronger. Together we will continue our work to protect American consumers.”

The FCC already has robocall investigation agreements with Alaska, Arizona, Arkansas, California, Colorado, Connecticut, the District of Columbia, Idaho, Indiana, Kansas, Kentucky, Michigan, Minnesota, Missouri, New Jersey, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, Tennessee, Texas, Vermont, Virginia, Washington, West Virginia, and Wyoming.

FCC commits additional $50 million from Emergency Connectivity Fund

The FCC announced on Wednesday that it has approved an additional $50 million from the Emergency Connectivity Fund program that is intended to help students with virtual learning.

The FCC said this funding will go to help 46 schools, seven libraries and two consortia across the country for students in American Samoa, Arizona, Colorado, Illinois, Ohio, and the U.S. Virgin Islands.

The FCC estimates that, so far, nearly $4.9 billion has been committed to connect over 12.6 million students across the country.

FCC Chairwoman Jessica Rosenworcel added in a press release that “this program is providing funding for nearly 11 million connected devices and 5 million broadband connections throughout the country and moving us closer toward closing the Homework Gap.

“With help from the Emergency Connectivity Fund, millions of students across the country now have online tools to support their education,” added Rosenworcel.

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Broadband Roundup

FCC June Meeting, Ookla Speeds at Airports, FCC Cautioned About Overstepping on Digital Discrimination

The FCC laid out its agenda for the June open meeting.

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Screenshot of TechFreedom President Berin Szóka

May 18, 2022 – In a press release Tuesday, the Federal Communications Commission announced the agenda for its June 2022 open meeting.

The FCC will explore ideas for wireless innovation at sea following increasing demand for spectrum to support offshore operations. The FCC will consider offshore spectrum policies to ensure efficient use of scarce spectrum resources.

In 2018, the FCC launched an inquiry to explain why some wireless 911 calls were misrouted to the wrong call center. The past four years showed a decrease in the frequency of this error but not its elimination. The FCC will seek comment on improvements that would reduce misrouted 911 calls and improve emergency response time.

During the June open meeting, the FCC will also consider preserving established local radio programming on FM6 radio service, if they meet certain conditions.

Ookla speedtest shows divide on speeds for Wi-Fi at airports

Analytics company Ooka analyzed airport Wi-Fi speeds at some of the busiest airports in the world and found that all surveyed airports met the recommended speed for streaming on mobile, but found a large divide between them.

The four fastest free airport Wi-Fis were all located in the United States: San Francisco International, Seattle-Tacoma International, Dallas/Fort Worth International, and Chicago O’Hare International. Following that came Dubai International, Hartsfield-Jackson Atlanta, Amsterdam Airport Schiphol, and Los Angeles International.

According to Speedtest Intelligence data, there is a wide gap between median speeds of the first 8 airports and the other airports on the list with the fasted being 176.25 Mbps. Airport lounges were found to have faster Wi-Fi on average than the airport itself.

Ookla, a sponsor of Broadband Breakfast, used its Speedtest Intelligence, which provides global insights into fixed broadband and mobile performance data using billions of consumer-initiated tests.

Tech lobbyists says FCC must not overstep authority to prevent digital discrimination

Tech lobbyist TechFreedom filed comments on Monday claiming that the Federal Communication Commission is overstepping its authority to regulate digital discrimination, following the FCC’s inquiry on how to prevent such a practice.

“If Congress had wanted the FCC to implement a new civil right law for broadband, it would have legislated a clear prohibition on discrimination – the essential element in all civil rights laws,” TechFreedom President Berin Szóka said in a release. “Instead, Congress wrote a law entirely about ‘facilitation.’”

The FCC’s inquiry follows an order under the Infrastructure, Investment and Jobs Act to make rules to “facilitate” equal access to broadband and “prevent digital discrimination.”

“It is simply not plausible that Congress could have intended to change how broadband deployment is regulated in an obscure amendment tacked onto a spending bill on the Senate floor with no discussion or legislative history,” Szóka argued.

He concluded that there are other routes the FCC can take to prevent digital discrimination and facilitate equal access. Szóka called on the commission to “focus on directing funding towards remedying unequal access to broadband and preventing potential digital discrimination- not only under the infrastructure act but also the FCC’s various other broadband programs.”

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