CTA CEO Gary Shapiro used his annual state of the industry address Tuesday to warn against the threat from tariffs expected under the administration of President-elect Donald Trump. Meanwhile, other speakers highlighted challenges consumers and industry will face as AI is added to smartphones and becomes a part of daily life.
FCC Chairwoman Jessica Rosenworcel circulated an NPRM Monday to start auctioning AWS-3 spectrum that will fully fund the FCC’s Secure and Trusted Communications Networks Reimbursement Program (see 2412240036). Congress agreed to send an additional $3.08 billion for carriers to rip and replace unsecure network equipment from Chinese companies Huawei and ZTE, though questions remain about whether that amount will suffice since the program's total is based on cost estimates filed years ago (see 2412310016). The auction would be the first since the agency’s general auction authority expired in March 2023. Rosenworcel is seeking approval of the NPRM through an electronic vote by commissioners. The NPRM “would propose updates to the service-specific competitive bidding rules to grant licenses for spectrum in the FCC’s inventory in the AWS-3 spectrum bands (generally the 1695-1710 MHz, 1755-1780 MHz, and 2155-2180 MHz bands),” said a news release. The FCC assigned the majority of AWS-3 licenses in an auction that ended Jan. 29, 2017. “Nevertheless, there remains spectrum in these bands that is not currently licensed due to various circumstances,” the release said: “Pursuant to the Congressional mandate, the Commission will now offer licenses for the unassigned AWS-3 spectrum in a new auction.” The FCC said the NPRM also would propose to update definitions of small and very small businesses “to conform with the Small Business Act’s five-year lookback period that has been used in recent spectrum auctions.” Rosenworcel cited Salt Typhoon, the Chinese government-associated effort at hacking U.S. telecom networks (see 2411190073), in seeking quick action on the NPRM. "With ‘Salt Typhoon’ and other recent incidents, we are all acutely aware of the risk posed by Chinese hackers and intelligence services to our privacy, economy, and security,” Rosenworcel said. “I am confident that the FCC’s world-leading and award-winning auction team will meet this important moment.” Rosenworcel, a Democrat, plans to leave the FCC in two weeks, when Republican Commissioner Brendan Carr is expected to replace her as chair.
CTA urged President-elect Donald Trump's administration to move with care on proposals for imposing higher tariffs on imports, warning they could result in sharp declines in the purchases of smartphones and other devices. With CES beginning in Las Vegas, CTA also projected retail revenue in the consumer tech industry of $537 billion this year, up 3.2% over 2024.
NTIA sent letters over the weekend to members of the newly reconstituted Commerce Spectrum Management Advisory Committee saying they had been appointed to serve. The letters ask that members respond by Jan 15. CSMAC is unlikely to meet before the end of the Biden presidency in just two weeks, industry officials said Monday.
Sens. Ed Markey, D-Mass., and Ron Wyden, D-Ore., slammed the ruling of the 6th U.S. Circuit Court of Appeals (see 2501020047) vacating the FCC’s April net neutrality order. In a statement released Thursday, the lawmakers said, “Without net neutrality, consumers, small businesses, and innovators alike will face increased costs, reduced choice, and less competition. It is a lose-lose-lose.” They added, “This ruling upends the fundamental principle that internet service providers should not act as gatekeepers, favoring certain users, content, or services over others." Markey and Wyden said the decision also shows why the U.S. Supreme Court was wrong when it overturned the Chevron doctrine. The opinion “makes basic errors about communications technologies, neatly illustrating why expert regulators, not judges, are best positioned to make complex public policy decisions.” Andrew Schwartzman, senior counsel at the Benton Institute for Broadband & Society, in an email wrote that the opinion “misreads” the 1996 Telecom Act “in finding that broadband internet service is not subject to the regulatory requirements of Title II of the Communications Act.” Among other concerns, “that deprives the FCC of the power to protect national security, insure that competitive broadband suppliers can have access to necessary distribution outlets and endangers wireless access programs for low-income consumers.” The “good news” was in the judges didn’t do, Schwartzman said. The three-judge panel “gave a narrow reading to the impact of the recent Supreme Court’s Loper Bright decision overruling the Chevron doctrine,” he said. The court also didn’t “rely on the carriers’ ‘major question doctrine’ arguments, so that the FCC will retain the power to regulate various aspects of broadband service without future Congressional action.” But Seth Cooper, Free State Foundation director-communications policy studies, said the court offered a “straightforward reading” of the Communications Act. The opinion was “refreshing because it shows how traditional tools of statutory interpretation can be used to resolve even seemingly technical questions like the regulatory classification of broadband,” Cooper emailed: “It’s the type of decision that eluded us so long as lower courts were subject to the ‘Chevron doctrine’ and effectively required to rationalize even far-fetched agency interpretations or re-interpretations of supposed ambiguous statutory provisions.”
NTIA’s Commerce Spectrum Management Advisory Committee may have fallen by the wayside, with many questions about its future unanswered heading into the second Donald Trump presidency. Several CSMAC members told us they reapplied for membership but have heard little in response.
The FCC released this week its biannual Communications Marketplace Report, which commissioners approved 3-2 with Republican Commissioners Brendan Carr and Nathan Simington dissenting. Carr, President-elect Donald Trump’s pick to lead the agency, objected, as he has in the past, to the focus on market segments rather than on the converged market (see 2101040051).
The 6th U.S. Circuit Court of Appeals ruling overturning the FCC’s latest net neutrality order Thursday was based on the court’s reading of the Communications Act and failed to dive into major questions items, as laid out in recent U.S. Supreme Court decisions (see 2409030030). It also means the next FCC, under President-elect Donald Trump, likely won’t spend its early days on a reversal of the order, which was approved 3-2 in April (see 2404250004).
Challenges remain for industry in its efforts remove and replace Huawei and ZTE equipment within carrier networks, even though Congress finally allocated $3.08 billion, closing the funding shortfall in the FCC’s Secure and Trusted Communications Networks Reimbursement Program (see 2412240036), Summit Ridge Group President Armand Musey said in an interview. Musey's firm advises several carriers in the program.
The 6th U.S. Circuit Court of Appeals on Thursday overturned the FCC’s latest net neutrality order, reclassifying broadband as a Title II service under the Communications Act. A three-judge panel handed down the decision two months after hearing oral argument (see 2410310041).