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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

TikTok Data Concerns, Broadband Data Collection System, Internet Access on COVID-19 Mortality

FCC Commissioner Brendan Carr is requesting Apple and Google remove the TikTok app over data concerns.

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Photo of Brendan Carr

June 29, 2022 – Federal Communications Commissioner Brendan Carr called for Apple and Google to remove Beijing-based popular video-sharing application, TikTok, from their app stores.

The app is run by ByteDance, a company that is “beholden to the Communist Party of China and required by Chinese law to comply with the PRC’s surveillance demands,” read the June 24 letter to Apple CEO Tim Cook and Google CEO Sunder Pichai.

“It is clear that TikTok poses an unacceptable national security risk due to its extensive data harvesting being combined with Beijing’s apparently unchecked access to that sensitive data,” said Carr, calling it a wolf in sheep’s clothing. “At its core, TikTok functions as a sophisticated surveillance tool that harvests extensive amounts of personal and sensitive data” such as search histories, keystroke patterns and biometric identifies.”

Carr claims that TikTok’s pattern of conduct regarding persons in Beijing having access U.S. sensitive data violates policies that both companies require every app to adhere to as a condition of remaining available on the app stores. “I am requesting that you apply the plain text of your app store policies to TikTok and remove it from your app stores for failure to abide by those terms.”

TikTok has assured users that American’s data is being stored in the U.S. but, according to Carr, this statement “says nothing about where that data can be accessed from.”

FCC opens mapping data system for filers early 

The Federal Communications Commission released a public notice on Thursday announcing that filers of broadband availability data in its new maps may obtain early access of the system for registering filer information.

The filing window for the Broadband Data Collection opens June 30, but early access will enable users to register their entities in the system and become familiar with the system before that date, the FCC said.

“We are making this functionality available in advance of the opening of the filing window to enable filers to log in, register, and be ready to enter their availability data as early in the filing window as possible,” read the public notice.

The BDC program is said to help improve broadband mapping data to help funnel federal dollars to where broadband infrastructure is needed. Most fixed and mobile broadband providers will be required to file information in the system, but third parties and government entities are also encouraged.

Impact of internet access on COVID-19 mortality

New analysis released last week by private research university Tufts found that increased broadband access in the United States reduced COVID-19 mortality rates.

“Even after controlling for a host of other socioeconomic factors, a 1 percent increase in broadband access across the U.S. reduced COVID mortality by approximately 19 deaths per 100,000, all things equal,” read the report.

The study also found that the impact was felt more strongly in metro areas, where a 1 percent increase in broadband access reduced the deaths by 36 per 100,000.

By conducting a correlation analysis, Tuft researchers found that broadband access is negatively correlated with COVID mortality, even after controlling for other major factors such as health status, income, race and education.

The study only considered pre-vaccine number to account for inconsistencies.

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Broadband Roundup

Rosenworcel Committed to Net Neutrality, Better Spectrum Coordination, Starlink Up in Internet Speeds

The FCC chairwoman reaffirmed her commitment to net neutrality at a conference on Friday.

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FCC Chairwoman Jessica Rosenworcel

WASHINGTON, June 28, 2022 – At a conference hosted by the American Library Association on Friday, FCC Chairwoman Jessica Rosenworcel reaffirmed her support for net neutrality rules.

According to a press release, Rosenworcel stated she wants to make a “return to common carrier regulation of internet service providers which aims to prevent ISPs from slowing down or blocking web traffic.”

Rosenworcel “fully backs” net neutrality rules passed under the Obama administration that were repealed during the Trump administration. “I opposed the last administration’s effort to roll it back, and I want it to once again become the law of the land,” she stated at the ALA.

A press release calls Rosenworcel ’s statement on net neutrality the “hallmark of her tenure” and says she faces opposition in her attempt to bring back net neutrality rules.

“It is just wrong for the internet to have slow lanes for people with less money,” Patty Wong, president of the ALA, said at the conference.

Better coordination needed for receiver performance 

On Monday, non-partisan think tank TechPolicy urged more coordination by the Federal Communications Commission with other agencies to better utilize spectrum assets during its receiver performance study, filing comments in response to the commission’s public consultation about that matter.

“The Commission has a considerable expertise and prior work to review in assessing whether it has the statutory authority in this area, and how to best incentivize all parties to build more robust receivers to operate in more and more congested spectrum,” the think tank said.

It suggested engaging with other agencies, such as the National Telecommunications and Information Administration, as well as users of government receivers.

James Dunstan, general counsel of TechFreedom, stated, “the FCC cannot fine-tune spectrum management with only half the orchestra.” He added that if the FCC does not engage with government users, “there will be little progress made toward finding broad solutions to increased spectrum congestion.”

The FCC and the NTIA have already agreed earlier this year to coordinate on spectrum management.

Ookla finds Starlink increased speeds by 38 percent over the past year

Metrics company Ookla said Tuesday that, according to its review of Starlink satellite broadband service in the first quarter, the company saw an increase of 38 percent in internet performance in the United States over the past year, said a press release.

However, the company’s analysis also showed that Starlink’s upload speeds decreased nearly 33 percent in the U.S. from 16.29 Mbps in 2021 to 9.33 in 2022.

Ookla notes that even as consumers choose Starlink, competitors are not far behind. It mentioned as key developments FCC approval for Amazon’s Project Kuiper to test its satellite service this year, and Viasat getting closer to merging with Inmarsat for a constellation launch next year.

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Broadband Roundup

Data Export Bill, Chamber of Commerce’s BEAD Issues, Wisconsin Putting $125M for Broadband

A bill would have the Commerce Secretary identify categories of personal data that could harm national security if exported.

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Photo of Marco Rubio, R-FL

June 27, 2022 – A bipartisan group of senators, including Marco Rubio, R-FL., and Ron Wyden, D-OR., introduced a bill Thursday that would limit the selling or transferring of Americans’ sensitive data to high-risk foreign countries.

The Protecting Americans Data from Foreign Surveillance Act directs the Secretary of Commerce, in collaboration with other key agencies, to identify categories of personal data that could harm national security if exported. It directs the Secretary of Commerce to “compile a list of low-risk countries for which exports will be unrestricted and to require licenses for bulk exports of the identified, sensitive categories of personal data to other countries.”

In a press release, Rubio said, “It is common sense to prevent our adversaries from obtaining the highly sensitive personal information of millions of Americans. We cannot trust private companies to protect Americans’ private data, especially given how many of them do business in China. Our bill would address this massive national security threat and protect Americans’ privacy.”

Experts have warned the data from Chinese-company-owned apps like TikTok, one of the world’s most popular video sharing websites, could be used by the Communist government for nefarious purposes.

“Our bipartisan legislation sets common-sense guardrails to block bulk exports of private, sensitive information from going to high-risk foreign nations and protect the safety of Americans against foreign criminals and spies,” added Wyden. “It will empower the United States to build a coalition of trusted allies where information can be shared without fear of misuse by authoritarian actors.”

Exports to high-risk countries will be presumptively denied and risk status of countries will be determined on the adequacy of the country’s privacy and export control laws, the circumstances under which the foreign government can coerce a person in that country to disclose personal data, and whether that government has been hostile against the United States.

Chamber of Commerce takes issue with aspects of BEAD program

The United States Chamber of Commerce highlighted in a press release last week what it said are faults in the $42.5-billion Broadband Equity, Access, and Deployment program that will be distributed to states and territories for broadband deployment projects.

The Chamber of Commerce commended the National Telecommunications and Information Administration for focusing the BEAD program on serving unserved areas first, having strong subgrantee qualifications, enabling effective stakeholder engagement, and addressing the costs of broadband permitting.

“Despite the many positive aspects, the notice of funding opportunity contains numerous problematic provisions and mandates, which will hinder the Infrastructure Investment and Jobs Act’s objective to connect all Americans while running contrary to the law’s bipartisan approach,” said the release.

The first concern is that the NOFO promotes government-owned networks, despite the IIJA’s neutrality to the type of provider. NTIA imposes “burdensome requirements on eligible entities as well as pressuring states to waive laws that place restrictions on public sector broadband providers.”

The NOFO, said the release, “picks technology winners and losers” by strongly prioritizing fiber at the expense of other technologies like satellite and fixed wireless.

Furthermore, it incentivizes states to adopt net neutrality rules, in direct contrast to IIJA requirements, by ensuring that subgrantees do not “impose unjust or unreasonable network management practices.”

The Chamber of Commerce further added that the NOFO requires eligible entities to create a middle-class affordability program that is “ill-defined” and “opens the door to additional state-level intervention in the broadband marketplace.”

The NOFO also favors union-friendly policies that “have nothing to do with connecting all Americans and everything to do with advancing unrelated union priorities.”

Wisconsin awards $125M in rural internet service grants

The Wisconsin Public Service Commission on Thursday awarded $125 million in broadband expansion grants toward 71 projects that will reach over 87,000 underserved and unserved locations over 45 counties.

According to the press release, the grant awards will leverage $185 million of matching funds from the grantees. The PSC received 194 applications in March 2022 requesting a total of $495 million.

Since 2019, Wisconsin has committed to disbursing over $289 million toward expanding broadband, including $105 million in federal funding.

“Over the last three years, we’ve worked hard to invest state and federal funding in projects that will provide more than 387,000 homes and businesses with reliable, high-quality internet. These grants will go to ensure students, workers, business owners, families, and communities can access the internet in every part of our state,” said Wisconsin Governor Tony Evers in the release.

“We’ve made tremendous progress in the past three years towards getting people access to high-quality, affordable internet service,” said PSC Chairperson Rebecca Cameron Valcq. “We will continue to make the investments needed to ensure all in our state have access to affordable broadband.”

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