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Hawley Calls For Ban On Large Corp Mergers, Chip Shortage Coming For Routers, Big Telecom Breakup

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Photo from the American Independent Institute

April 12, 2021 – Senator Josh Hawley, R-MO, shared with Axios a new proposal that would bar corporate giants from acquisitions and strengthen century-old antitrust laws.

“This country and this government shouldn’t be run by a few mega-corporations,” Hawley told Axios. The Republican Party “has got to become the party of trust-busting once again. You know, that’s a part of our history.”

Though he is among the Senate’s most conservative members, him attacking corporate power is not out of place when read with Senators Elizabeth Warren’s or Bernie Sanders’ agenda.

The “Trust-Busting for the Twenty-First Century Act” would include banning mergers and acquisitions by firms with a market cap over $100 billion. The threshold for prosecution under existing federal antitrust laws would be lowered, emphasizing the protection of competition instead of replacing consumer harm standards. Companies would also be required to forfeit all their profits resulting from monopolistic conduct that lose federal antitrust lawsuits. And the Federal Trade Commission would have new power to designate and regulate “dominant digital firms” in online markets.

If enacted, Hawley’s call to regulate mergers would affect far more than Silicon Valley. Its rules on mergers would also cover dozens of corporate giants in virtually every economic sector of the country.

If anyone is confused about the Republican “party of business” proposal being tough on business from one of its own kind, the Senator offered two responses: “’Trust-busting’ was a Republican concept originally, under Progressive-Era GOP president Teddy Roosevelt,” and “strong antitrust laws are ultimately about the sanctity of competition, and Republicans ought to embrace that.”

Axios reported that while his ideas might win some support from other populist Republicans, the broader party would need a sea-change in thinking to embrace it. Democrats, meanwhile, are likely to prefer their own bills, reported Axios.

Chip shortage could hit routers next

According to sources who spoke with Bloomberg, wireless routers “are poised to be the next piece of hardware to feel the effects of a global chip shortage currently disrupting the availability of the latest generation CPUs, GPUs, and game consoles.”

Internet service providers are already feeling the crunch in supply, with the sources stating ISPs are looking at delays for broadband router orders that will last up to 60 weeks—twice as long as the previous lead time.

PC Gamer reports that it has not seen any signs of chip shortages affecting standalone consumer routers for the of Wi-Fi 6 (802.11ax) and Wi-Fi 5 (802.11ac) models on shopping sites Amazon and Newegg, but warned things could turn on a dime, as other hardware has.

In some parts of the world, including Canada, carriers have complained that next-generation modems have been in short supply because of the chip shortage.

The reason behind the shortages? A series of unfortunate events, really. Karsten Gewecke, senior vice president of Zyxel, a major player in the router market, said the COVID-19 pandemic affected its supply chains. One of Zyxel’s manufacturing facilities in China temporarily stopped when COVID first hit over a year ago, and has been spotty ever since.

The situation has worsened due to increased consumer demand for broadband hardware as more people are working from home. And for a triple whammy: “Zyxel routers are among the cargo on Ever Given, the Evergreen-owned container ship that got stuck in the Suez Canal and has now been detained,” reported PC Gamer.

Gewecke said ISPs could run out of router inventory in the next several months due to these events.

Does big telecom need a break-up?

First it was big tech, and now big telecom is coming under scrutiny for its concentrated market power, as “too big to trust” accusations are leveled against internet service providers (ISPs).

The overwhelming majority of connections are now controlled by a cartel, just a few companies dubbed “Big Telecom” — AT&T, Verizon, CenturyLink, Comcast, and Charter, reports telecom veteran Bruce Kushnick on Medium. Often, in addition to controlling broadband access, these companies have a bundled package that also includes phone and cable TV services.

Kushnick argued that in the United States, bundled service packages are 5-20 times more expensive than most of Europe, averaging $215/month compared to Europe’s $23-50/month. He said that “Many countries have wireless services for $35 with 1000 GB or more, what he called “truly unlimited.” The US price is about $90 with an ‘unlimited’ plan of 50GB, whose speed is throttled after that threshold.

Broadband Roundup

FCC and State AGs on Cybersecurity, FCC Approves Starlink, Verizon and Zebra on 5G

The FCC is partnering with state attorneys general to crack down on cybersecurity measures.

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Photo of Verizon Vice President of Business Products Steve Szabo from LinkedIn

December 7, 2023 – The Federal Communications Commission announced Wednesday it has signed a memorandum of understanding with four states with the hopes of improving data privacy and cybersecurity protection.

These state attorneys general will work with the FCC to share “expertise, resources and coordinated efforts,” to better their ability to protect consumers and to take on cyber and data-related investigations.

During investigations, there will be a mutual exchange of resources and information to execute enforcement, with the two entities working together to source records, interview individuals, go through complaints and review bad actors, read a press release.

The partnership is part of the FCC’s Privacy and Data Protection Task Force and a broader initiative to strengthen ties between the FCC and federal actors to tackle enforcement of privacy, data protection and cybersecurity.

“I am thankful to these four partners for prioritizing interagency cooperation, and we welcome other state leaders to join us in this effort to ensure we work together to protect consumers and their data,” said FCC Chairwoman Jessica Rosenworcel.

FCC partially grants deployment of Starlink satellites

The FCC announced in an order Friday that it has partially granted SpaceX the ability to deploy and operate a group of nearly 30,000 satellites.

The FCC has granted SpaceX the authority to deploy up to 7,500 satellites, but is deferring SpaceX’s request to use E-band frequencies and tracking beacons, which refer to methods of space-to-ground communication.

SpaceX initially filed a request to deploy its first-generation Starlink system in 2018, which was granted, and submitted an application to deploy a group of second-generation Starlink satellites in 2020, which received pushback.

The FCC noted in its order that it believes partially granting the SpaceX Starlink second-generation application would serve the public interest. It added that this will allow the satellite company to work toward improving broadband in unserved and underserved regions across the country.

Verizon to partner with Zebra Technologies

Verizon announced Wednesday it will be partnering with digital solution company Zebra Technologies to release a mobile device and software package designed to better customer’s experience with the 5G network.

Zebra will be providing a fleet of technology, such as tablets and mobile computers, which will include the company’s Zebra Mobility DNA software, tailoring the package toward customers who work in industries like transportation, logistics as well as manufacturing, read a press release.

Those devices will be certified to work with Verizon’s 5G private networks, which will provide users with more network capacity to work with, alongside secure voice communication, the press release added.

“Partnering directly with Zebra Technologies accelerates the timeline from adoption to implementation, giving critical days or weeks back to businesses that can get caught up in protracted cycles of getting operations up and running,” said Verizon’s Vice President of Business Products Steve Szabo.

“Zebra is committed to integrating 5G across the company’s entire portfolio, giving our customers more flexibility for their wireless and mobility needs,” said Zebra Technologies Senior Vice President Julie Johnson.

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AT&T Partners with Ericsson on OpenRAN, FCC Extends Engineering Waiver, New COO at Atlas Digital Group

AT&T is pushing for more interoperability of equipment on its wireless network.

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Photo of Ericsson 5G factory in Texas.

December 6, 2023 – AT&T announced Monday a partnership with Swedish mobile wireless equipment maker Ericsson to build out its open radio access network to get ahead of the race to allow the networks to work with various equipment suppliers. 

The five-year contract with Ericsson could see AT&T spend roughly $14 billion and eventually see 70 percent of its wireless network traffic travel over open platforms by late 2026. 

Beginning in 2025, AT&T said it will be coordinating with multiple suppliers on the development of the Open RAN ecosystem, including Intel, Dell, Corning, and Fujitsu. 

“AT&T’s and Ericsson’s multiyear joint commitment to Open RAN deployment comes at a pivotal moment in the 5G innovation cycle,” the telecom said in a press release. “This move to an open, agile, programmable wireless network positions AT&T to quickly capitalize on the next generation of wireless technology and spectrum when it becomes available. 

“These innovative technologies will enable lower-power, sustainable networks with higher performance to deliver enhanced user experiences,” it added. “Ericsson’s open architecture will provide a foundation and springboard for developers driving innovation through open and programmable networks and bringing new suppliers into the industry. This will foster modernization and competition in the U.S. wireless equipment market.”

The National Telecommunications and Information Administration and the head of the Federal Communications Commission have said that open RAN deployments would allow network owners to move away from proprietary technologies to diversify the supply chain and reduce security risks.  

The NTIA is currently in the midst of distributing money from the $1.5-billion Public Wireless Supply Chain Innovation Fund, which is intended to help telecoms transition to open, interoperable wireless networks. 

Ericsson plans to use the 5G smart factory in Lewisville, Texas to provide equipment to the project.

FCC extends waiver to allow the use of non-professional certified engineers 

The Federal Communications Commission filed an order Thursday extending the use of a waiver that permits telecommunication companies to use non-professional certified engineers to sign off on broadband data collection. 

The use of the waiver was set to expire on September 15th of this year for broadband data recorded as of June 30th 2023, but now will extend for three more filing periods to be used for data collected up to December 31, 2024. 

The FCC reasoned that extending the use of the waiver “strikes an appropriate balance by giving providers limited relief from the PE requirement, on the condition that they are able to expeditiously provide to the Commission, when requested, underlying network information that supports their availability data.”

Industry associations USTelecom and the Competitive Carriers Association filed a petition in August to extend for three filing periods the use of a waiver that does not require provider’s broadband data filings to be verified by a licensed professional engineer. They argued that requiring sign-off from a licensed professional engineer would burden smaller providers. 

The FCC put in place a rule requiring mapping data to be signed off by a certified engineer and a corporate officer, but would accept a single signature sign off if the signatory could qualify both of those positions. 

In 2020 Congress passed the Broadband DATA Act, which required the FCC to create a new set of rules to regulate how biannual broadband service data was collected and distributed. As a part of that act, service providers were required to submit verification from a “corporate officer” that any data they had collected was accurate. 

Atlas Digital Group appoints new COO

Atlas Digital Group, an e-commerce company serving the broadband industry, announced Monday that Chad Neuhaus will be taking on a new role as the company’s chief operating officer. 

Neuhaus will manage the implementation of operational strategies, promoting quality control across deliverables and working with senior management members to work on continued development strategy, explained a press release. 

I’m ready to contribute to an outstanding team and help the company achieve even stronger performance as we roar into 2024,” said Neuhaus. 

Prior to joining Atlas Digital Group, Neuhaus served for 23 years in various roles at telecommunications companies, including Altice and AT&T, a press release said. 

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Broadband Roundup

Nvidia Navigates Export Rules, FCC on High-Cost, Kansas Awards Fiber Grants

Department of Commerce continues to combat the export of U.S. semiconductors to adversarial nations

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Photo of U.S. Department of Commerce Secretary Gina Raimondo

December 4, 2023 – Commerce Secretary Gina Raimondo said Saturday that the department is ready and willing to impose further export restrictions on any products made by graphics card maker NVIDIA that assists adversarial nations in developing their artificial intelligence capabilities, according to a story from Fortune

“If you redesign a chip around a particular cut line that enables them to do AI, I’m going to control it the very next day,” Raimondo said at the Reagan National Defense Forum in Simi Valley, California, according to Fortune. 

Nvidia, which has been focusing on its development as an AI company, has restructured its advanced chips to access the Chinese market, which is worth at least $400 million in sales. In response to exports restrictions imposed by Commerce in August 2022, Nvidia tweaked its A100 chip series to comply with U.S. rules, limiting the processing capabilities and re-releasing the chips under a new name, the A800 series.

In October 2023, Commerce imposed additional licensing requirements based on performance threshold to limit the export of high-performance computing chips, to include the A800 series. Less than a month later, Nvidia had introduced a series of GPUs with limited computing capabilities in compliance with Commerce export requirements, made available to Chinese customers.

Commerce has said it is trying to limit risks of the chips being used in foreign military operations.

In response to Secretary Raimondo’s recent claims, Nvidia told Broadband Breakfast, “We are engaged with the U.S. government and, following the government’s clear guidelines, are working to offer compliant data center solutions to customers worldwide.”

The advanced chips are central components to the rise of artificial intelligence, autonomous machines, cloud and high-performance computing.

FCC issues guidance to high-cost support recipients 

The Federal Communications Commission released guidance Wednesday for recipients of high-cost support, outlining the coordination necessary between the recipients, state broadband offices and Tribal entities to avoid overbuilding in areas supported by multiple broadband programs. 

The FCC notes that the recipients of the high-cost programs, which include the Rural Digital Opportunity Fund, Enhanced Alternative Connect America Cost Model, and Connect America Fund, must participate in the broadband map challenge process as states prepare to deliver money from the $42.5-billion Broadband Equity, Access, and Deployment program.

“Full participation of high-cost support recipients in BEAD Program challenge processes is critical to ensuring that the FCC’s high-cost funding is not duplicated by the BEAD Program,” the FCC said in the guidance. 

“Participation in the BEAD Program challenge process also ensures state broadband offices receive information about high-cost program supported deployments beyond the valuable information provided on the Broadband Funding Map,” it added. 

These recipients should coordinate with their respective state broadband office by taking steps to ensure that the National Broadband Map accurately reflects the locations they serve, the speeds they provide to the locations, and the technologies they are using to serve those locations, the FCC emphasized. 

In addition, the FCC guidance emphasizes that high-cost support recipients should engage with each relevant Tribal government annually to obtain the necessary consent, permits, and other approvals as soon as practicable, even if the recipient has not begun deployment. 

The Tribal engagement obligation set by the FCC represents an opportunity for Tribal governments and high-cost support recipients to coordinate on many issues critical to the deployment and adoption of communications technologies on Tribal lands.

Kansas awards $28.5 million in state broadband grants

Kansas announced it is awarding $28.5 million in broadband grants Wednesday to 12 internet service providers through the state’s Lasting Infrastructure and Network Connectivity program. All of the funding dedicated to broadband infrastructure is going toward deploying fiber technology.

One of the largest awards is to the Prairie Band Potawatomi Nation, a native American tribe, which will bring fiber-to-the-home connectivity to all of the nation’s 204 residences, as well as to 10 Tribal government services locations on the PBPN reservation. 

Additionally, included in the awards is funding for Kansas’ first carrier-neutral Internet Exchange Point, which will be located on the campus of Wichita State University. The IXP stands to reduce IP transit pricing to below 10 cents per megabit, an expected 90% reduction in cost as compared to current transport and transit pricing through Kansas City, Missouri. 

The awards will also expand middle mile infrastructure through two economically distressed counties in north central Kansas. 

The state funds will be matched by the ISPs for a total of $33.9 million in additional investments.

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