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Tech Groups and Luminaries Welcome Biden-Harris Victory, Clyburn Speaks FCC, FTC to Sue Facebook

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Screenshot from after Biden and Harris speeches on Saturday

Tech CEOs and industry lobbying groups alike congratulated President-elect Joe Biden and Vice President-elect Kamala Harris after their victory in the U.S. presidential election Saturday, offering some hits of collaboration between government and an under-fire technology industry.

Amazon CEO Jeff Bezos celebrated Biden and Harris’ win in an Instagram post, which stated that their victory signifies that “unity, empathy and decency are not characteristics of a bygone era.”

Microsoft founder Bill Gates said on Twitter that he looks forward to “working with the new administration and leaders on both sides in Congress on getting the surging pandemic under control.”

Facebook COO Sheryl Sandberg and Priscilla Chan, wife of Facebook CEO Mark Zuckerberg, both congratulated Harris on her historic victory, which makes her the first Black woman and first person of South Asian American descent to be elected vice president.

Gary Shapiro, president and CEO of the Consumer Technology Association, said his association looks “forward to working with President-elect Biden and his administration, as well as the new Congress to advance priorities that promote innovation and competition in America.”

Shapiro said he specifically looks forward to recalibrating trade policies, promoting free online speech by preserving Section 230 protections, and ensuring all Americans have the access and benefits of high-speed broadband.

The Computer and Communications Industry Association congratulated the pair, adding that the Administrations has work to do in generating digital workforces of the future.

President and CEO of ACA Connects Matthew Polka said that the “private industry and government must work together on broadband policies that focus on getting broadband to unserved areas, serving schools and students, enabling remote health services, and providing affordable services for low-income families.”

Expect new faces at the FCC, says Mignon Clyburn

“We will see a couple new faces at the Federal Communications Commission, although I have no idea who it will be,” said Mignon Clyburn during an event that aired Friday as part of the Reboot 2020 virtual conference.

See also Broadband Breakfast Live Online’s interview with Clyburn as part of its “Champions of Broadband” series in “Mignon Clyburn, Coy on Future Federal Communications Commission Role, Says Agency Lacks Authority to Clarify Section 230,” August 6, 2020

Clyburn said that a Biden win means that Federal Communications Commission Chairman Ajit Pai would leave the agency. She predicted that Commissioner Brendan Carr would follow his departure shortly after. She noted that the Senate has a strong role in picking the replacement commissioners.

Clyburn said she believes the Biden FCC’s first policy initiatives would be focused on recovery from the COVID-19 pandemic.

“In 2017, Trump presented an infrastructure package to Congress that never transpired,” said Clyburn, adding that it was a shame, because the infrastructure plan was “a winning formula.”

“In 2021, look for infrastructure to make a comeback. The Democrats are ready, poised, and believe broadband is critical infrastructure,” said Clyburn. “We’re going to see a fixation on leveraging the digital tools needed for full participation in the 21st century.”

Clyburn criticized the Trump FCC, saying the agency favored legacy providers during funding initiatives, resulting in critical resources being wasted.

“I just want the agency I care about to be better,” said Clyburn.

Federal Trade Commission reported close to antitrust case against Facebook

Politico reports that the Federal Trade Commission is planning to sue Facebook for antitrust violations before the end of November, according to three people familiar with the probe. The decision would be the agency’s first major swing at the social media giant, amid larger antitrust efforts against search engine giants Google.

The suit, which has been in the works for 16 months, is expected to allege that Facebook unfairly stifled competition when it swallowed up smaller rivals. It would further assert that Facebook maintained its competitive position by utilizing user data, collected on the app, to keep users engaged.

The charge could ultimately force Facebook to unwind its acquisitions of photo-sharing app Instagram and messaging platform WhatsApp.

The FTC is considering handling the case internally, which would cut out states from joining the litigation. FTC Chair Joe Simons reportedly favors keeping the suit in-house, preferring to bring it before the agency’s administrative law judge.

Administrative cases are less public than federal court proceedings and the agency has never before brought a case of this magnitude internally.

 

Broadband Roundup

House Passes Ban on Chinese Equipment, 3.45 GHz Auction Reaches Reserve Price, Against a ‘Wi-Fi Tax’

Bipartisan Senate bill clears the House, FCC auction prices climb higher, tech groups oppose newly proposed fee

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Sen. Marco Rubio, R-Florids

October 22, 2021—The House of Representatives passed the Secure Equipment Act of 2021 on Wednesday, with a goal of mitigating perceived national security threats from equipment manufacturers, particularly Chinese companies.

The bill would require the Federal Communications Commission issue rules prohibiting new equipment licenses to potentially dangerous companies on the agency’s “Covered Equipment or Services List.”

Sens. Ed Markey, D-Mass., and Marco Rubio, R-Fla., initially introduced the act before its passage in the Senate. The House version of the bill was introduced by Reps. Anna Eshoo, D-Calif., and Steve Scalise, R-Louisiana.

Chinese state-backed firms Huawei and ZTE are among the companies included in the FCC’s list of technology companies that the agency has deemed a national security threat. The agency was required by the Secure and Trusted Communications Networks Act of 2019 to detail which companies it believes to pose a severe threat to U.S. safety.

The new measure would make it impossible for U.S. telecommunications carriers to continue using equipment from companies deemed threats by the FCC if that equipment was purchased with private or non-federal government dollars. That practice was previously allowed, even those using such equipment with federal funds had already been effectively banned.

FCC 3.45 GHz auction proceeds reach reserve price

The 3.45 GHz auction at the FCC hit the agency’s reserve price of $14.77 billion Wednesday.

Many doubts existed about whether the auction would not hit the reserve price and become the first to do so in the FCC’s history.

Should this auction follow the same progression as this year’s C Band auction, it is possible proceeds could reach $20 billion. Current proceeds total $16.43 billion.

Success of the auction would come as a large relief to AT&T, which is projected to be the auction’s largest spender ahead of T-Mobile and Dish.

Analysts at New Street Research stated that they believe it is likely that the auction will meet the reserve price and that the actions of the Department of Defense will serve as a strong indicator of the auction’s success because it uses the mid-band spectrum that is most sought after by carriers.

CCIA opposes a proposed ‘Wi-Fi tax’

The Computer & Communications Industry Association on Thursday in submitting comments to the FCC on Thursday in opposition to a proposal that would charge regulatory fees to users of unlicensed spectrum.

The CCIA was joined in its opposition by the Internet Association, Digital Media Association and Incompas.

The organizations said that the FCC’s proposed fees would “effectively result in something like a Wi-Fi tax.”

CCIA said that the proposal would be “unworkable to implement” and that it exceeds the legal authority and mission of the FCC. Further, they state it would also harm innovators who use unlicensed spectrum to create services for consumers.

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‘Squid Game’ Exposes Traffic Problem, Virginia’s $2B Broadband Investment, West Virginia Mapping

Netflix hit’s traffic struggle, Virginia expects $2B from P3, op-ed says FCC expects states to get good maps before FCC.

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Netflix CEO Reed Hastings

October 20, 2021––A South Korean broadband company is suing Netflix to cover the cost of the surge in traffic from its hit television show “Squid Game.”

The show, which according to Netflix has more than 100 million streams, became a global hit last month.

The Financial Times reports that SK Broadband, owned by SK Telecom, South Korea’s largest mobile operator, argues that streaming platforms should pay for the congestion on its networks.

The company said that the traffic Netflix generated on its network increased to 1.2 trillion bits of data processing per second since September, an increase that’s equal to 24 times the company’s normal traffic over three years. The company said its network had to be upgraded twice to accommodate the traffic surge caused by customers streaming the show on Netflix.

Local law in South Korea requires the companies with more than 1 million users and using more than 1 percent of total network traffic to pay internet fees to distribute the maintenance costs incurred by broadband providers.

Netflix accounted for almost 5 percent of internet traffic in the fourth quarter and had more than 1.7 million paid subscribers. SK Broadband argues that Netflix must pay more in network usage fees.

Virginia announces $2 billion public-private broadband partnership

Virginia Governor Ralph Northam said Tuesday that the state expects more than $2 billion in funding for high-speed broadband investments after announcing a public-private partnership with local governments and private internet service providers, according to the Richmond Times-Dispatch.

Northam announced that the state received requests to fund 57 projects to expand broadband across 84 localities across Virginia, totaling $943 million in grants. It would be matched by $1.15 billion in private and local government funds.

“Broadband is as critical today as electricity was in the last century,” said Northam. “Making sure more Virginians can get access to it has been a priority since I took office, and the pandemic has pushed us all to move even faster.

“Virginia is now on track to achieve universal broadband by [2024], which means more connections, more investments, more online learning and expanded telehealth options, especially in rural Virginia,” he said.

Northam and the Virginia general assembly appropriate $700 million of the $4.3 billion that Virginia received under the federal emergency aid package to accelerate Virginia’s universal broadband coverage goal. The expected completion has been moved up from 2028 to 2024.

The plan is expected to bring internet access to more than 250,000 homes and businesses.

The state is using federal emergency aid from the American Rescue Plan Act to close the digital divide in Virginia.

Op-Ed: West Virginia being asked to produce quality broadband maps before FCC

Advocates for more accurate maps say that the federal government is hypocritical in asking West Virginia for more accurate maps than the Federal Communications Commission can produce.

“The state is being asked to produce accurate maps, which the federal government knows full well its own agency did not produce” for the state the invest millions of dollars in federal American Rescue Plan funding for broadband expansion, writes a Wednesday op-ed in the Weirton Daily Times.

The FCC has been under fire for flaws in its broadband mapping data, which was relied upon to produce winners for the Rural Digital Opportunity Fund, which forced the commission to clean-up the result of the reverse auction after finding that some of the money would go toward wasteful spending.

West Virginia’s effort to expand broadband is led by the state Department of Economic Development. State Economic Development Secretary Mitch Carmichael said that if self-reported maps show no service in an area “you can bet your life there’s no service there.”

“There’s a lot more at stake as the department works to get these maps right. It is no exaggeration to say that the future of education and employment in West Virginia is riding on it,” said the Times. “Good luck, then, to Carmichael and his department as they work to clean up yet another federal government mess that has left the Mountain State struggling for too long.”

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New Senate Antitrust Bill Reaction, Charter Making Executive Changes, T-Mobile, Verizon Top Charts

Trade association doesn’t like new antitrust bill, Charter makes changes at the top, T-Mobile leads wireless, Verizon on wireline.

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Chuck Grassley, R-Iowa.

October 19, 2021 – A Senate antitrust bill introduced Monday that would empower the Federal Trade Commission to further regulate technology companies will harm start ups and small business, according to the Consumer Technology Association.

The trade association, which represents companies across the tech sector, said the American Innovation and Consumer Choice Act – introduced by Sens. Amy Klobuchar, D-Minnesota, and Chuck Grassley, R-Iowa – will “cause irreparable harm to small businesses and startups and put U.S. companies at a competitive disadvantage against China and other nations eager to overtake our country as global tech leader.”

The bill would prohibit “dominant platforms” from favoring their own products and services to the detriment of competition, stop conduct that is harmful to small businesses including preventing interoperability with big platforms, requiring payment to receive preferential treatment on the big platform, bias search results, and misuse business data to compete against the small companies.

Amazon, for example, was accused of having taken the information of products of smaller companies on its platforms to create their own competing products.

According to the release, the bill received the support of at least 10 other Senators across party lines and companies including Spotify and Roku.

But the CCA said the bill, in empowering the FTC, would allow it to “ignore the consumer welfare standard, while imposing massive fines with minimal due process.

“Further, the bill will take away features and functions that millions of Americans love and use in their everyday lives,” the CCA statement said. “Say goodbye to Amazon Prime free shipping, Google maps in search results, preinstalled iPhone apps and many more.”

The House already has before it six antitrust bills that are awaiting votes.

Charter makes executive changes

Charter announced Tuesday that it is promoting chief financial officer Chris Winfrey to chief operating officer and Jessica Fischer will move from executive vice president to the COO position.

John Bickham will be vice chairman before he retired at the end of 2022, the company also announced in a press release, while chief product and technology officer Rich DiGeronimo will oversee the company’s network operations as an additional responsibility.

“I have worked with John for three decades and at every turn, his knowledge, leadership and steady hand have not only contributed greatly to the success of the companies we led, but made a profound impact on the growth of our industry,” said CEO Tom Rutledge. “I am grateful that John will continue to serve Charter in this new capacity as a strategic advisor to me and the executive team, and his guidance will help ensure a successful transition for Chris into the COO role.”

T-Mobile gets top billing for wireless, Verizon for wireline

According to an Ookla report Monday, T-Mobile ranked as the fastest mobile operator in the country in the third quarter with a median download speed of 62.35 Megabits per second, as Verizon took home the top rank for wireline download speeds at 178.38 Mbps.

For wireless, AT&T was second in speed at 47.42 Mbps, followed by Verizon at 39.91 Mbps. T-Mobile also ranked first in 5G performance with a median speed of 135.17 Mbps, followed by Verizon at 78.94 Mbps and then AT&T at 72.46 Mbps. T-Mobile was also top in 5G availability with 64.4 percent, with AT&T second at 44.8 percent and Verizon third at 34.3 percent.

T-Mobile completed its merger with Sprint last year. It proposed that the combined entity was the only way the companies could compete against the top players and offer a competitive 5G product.

On the wireline side, Cox was second to Verizon on download speed at 168.56 Mbps, followed by Comcast’s Xfinity at 161.87 percent, Spectrum fourth at 143.57 Mbps, AT&T Internet at 132.48 Mbps, and CenturyLink at 59.80 Mbps.

New Jersey had the fastest median download speed on wireline at 158.19 Mbps, followed by New York at 147.46 Mbps, California at 142.56 Mbps, Florida at 141.88 Mbps, and Texas at 140.15 Mbps.

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