In a move certain to inflame the ongoing trade dispute between the United States and China, Justice Department officials announced criminal charges against Chinese telecommunications equipment manufacturer Huawei, several of its affiliates, and its chief financial officer for alleged theft of trade secrets from U.S. telecommunications providers, bank fraud, obstruction of justice, and other violations. The two indictments issued on January 28, 2019, represent just the latest pushback against foreign telecommunications interests by U.S. officials, citing national security concerns and unfair trade practice claims. The FCC already proposed rule changes last year that would prohibit the use of Universal Service Fund support to purchase equipment or services from foreign companies deemed national security threats, primarily targeting companies from China and Russia. Congress also recently passed legislation prohibiting federal agencies and those working with them from using components provided by Huawei and other Chinese manufacturers. With the Trump Administration reportedly poised to issue an executive order effectively barring American companies from using Chinese-origin equipment in critical telecommunications networks, domestic service providers should keep a close eye on their supply chain security and potential liability when working with foreign entities. A criminal conviction on these charges could lead to broader restrictions on trade in U.S. export-controlled products with the company. Given the presence of encryption in telecom equipment, export controls on such products are relatively widespread
The FCC’s Spectrum Frontiers proceeding, which is focused on making millimeter wave (“mmW”) spectrum available for flexible commercial mobile and fixed use, seems poised to move into a new phase even as the current phase is playing out. At its next meeting on December 12, 2018, the agency will vote on rule changes to facilitate a consolidated auction of spectrum in three spectrum ranges designated in 2016 and 2017 for flexible mobile and fixed use: the so-called Upper 37 GHz Band (37.6-38.6 GHz), the 39 GHz Band (38.6-40.0 GHz), and the 47 GHz Band (47.2-48.2 GHz). The FCC reportedly anticipates completing the auctions by the end of 2019, following the present auction of 28 GHz Band licenses (in 27.50-28.35 GHz) and the immediately-following auction of 24 GHz Band spectrum (in 24.25-24.45 and 24.75-25.25 GHz). A draft order has been made available to the public.
Of particular interest, the recently released draft item would lay the groundwork for the FCC’s second incentive auction (after the “inaugural” broadcast incentive auction completed in March 2017). A 39 GHz incentive auction would be structured quite differently than the 600 MHz broadcast incentive auction and attempt to reduce encumbrances in the 39 GHz Band by offering existing licensees the option to relinquish their licenses in exchange for payment. The FCC leadership appears bullish that the three auctions will draw significant interest from major service providers looking to support next-generation applications, including 5G wireless connectivity and the Internet of Things. Naturally, the first-in-time 24 and 28 GHz auctions may give some sense in advance of that interest. Through November 26, 2018, after 18 rounds, the 28 GHz Band auction had generated under $200 million in bids, albeit that spectrum is encumbered in many of the largest markets and in slightly more than 50% of all counties nationwide, including the most populous. The 24 GHz Band auction may prove a much better test of the appetite for participants to pay high prices for so-called “high band” spectrum.
Responding to demands by high tech companies for more so-called “mid-band” unlicensed spectrum to augment that already made available in the 5 GHz Band, which accommodates Wi-Fi, Internet of Things (“IoT”), and other Unlicensed National Information Infrastructure (“U-NII”) applications as well as Licensed Assisted Access and LTE-Unlicensed solutions, the FCC will vote on a draft Notice of Proposed Rulemaking (“NPRM”) at its October 26 Open Meeting to make up to 1200 megahertz of nearby spectrum available for similar purposes. The draft leaves no doubt that, to make the 5.925-7.125 GHz band (the “6 GHz Band”) available for unlicensed use, sophisticated sharing mechanisms will need to be in place. Various parts of this frequency range are already used by fixed, mobile, and satellite services, and the draft item commits to protecting these incumbents and allowing these services to grow while at the same time opening the band to increased numbers of unlicensed devices. To achieve this, the Commission is considering drawing upon its experience with white spaces and the Citizens Broadband Radio Service (at 3550-3750 MHz), and would seek comment on numerous subjects before adopting rules. The draft item would be a stepping stone to enabling unlicensed devices to operate with wider bandwidths and higher data rates, which the Commission hopes would set off a new wave of innovation in consumer devices complementing its recent moves to spur the rollout of next-generation 5G networks. The NPRM, when adopted, will be sure to generate a wave of comments from both equipment manufacturers and broadband providers hungry for more spectrum as well as incumbent public safety organizations, utilities, satellite companies, and various other fixed and mobile services licensees seeking to protect and hoping to expand their existing operations in the 6 GHz Band, particularly as relocation options for other similar spectrum are increasingly scarce.
At last week’s 5G summit at the White House, FCC Chairman Ajit Pai announced his Facilitate America’s Superiority in 5G Technology (“5G FAST Plan”). The first of the three components of the Chairman’s announced strategy is making more spectrum available for 5G services by expanding licensed and unlicensed opportunities. To those ends, the FCC announced this week that the Commissioners will vote at its next meeting on October 23, 2018, on three items that would launch a proceeding to consider more unlicensed operations, make rule changes designed to increase the value of mid-band spectrum, and expand channels for land mobile radios primarily used by government agencies and businesses. Specifically, the FCC proposes allowing unlicensed devices to operate in the 5.925-7.125 GHz band (the “6 GHz Band”) to support next-generation unlicensed technologies, including Wi-Fi. The agency also anticipates recrafting the licensing rules related to the Citizens Broadband Radio Service in the 3.550-3.700 GHz band (the “3.5 GHz Band”), with an emphasis on the Priority Access Licenses (“PALs”) it will auction. In addition, the FCC expects to increase, through various methods, the number of channels available for private land mobile radio (“PLMR”) operations in the 806-824 MHz and 851-869 MHz bands (the “the 800 MHz Band”).
Rounding out the major actions that will be voted on later this month at the Open Meeting, the FCC released a draft item that would offer regulatory relief to rate-of-return carriers providing Business Data Services (“BDS”). The proposed items are sure to impact every sector of the communications industry, from the largest wireless carriers to the smallest broadband providers and device manufacturers to business, industrial, and public safety radio users, while potentially transforming large-scale data transport services.
Our “Spectrum Update” podcast series takes a close look at hot topics and issues in wireless spectrum. In this episode, Partners Chip Yorkgitis and Josh Guyan discuss the hotly contested changes that are proposed and ongoing in the spectrum between 3.1 and 4.2 GHz in the U.S. There appear to be potential opportunities for commercial mobile to share these bands with current uses, but there are also calls for greater use of the bands for unlicensed and fixed wireless services. In many countries in Europe and Asia, in particular, these bands have been identified for 5G use already and the FCC is considering doing the same in the U.S. Click here to listen to this episode and click here to subscribe on iTunes.
The FCC plans to take major action to speed the deployment of small wireless broadband facilities to support 5G technologies at its next meeting, scheduled for September 26, 2018. The FCC’s draft Declaratory Ruling and Order may significantly tilt the balance of power in favor of wireless broadband providers over state and local governments concerning access to rights-of-way and deployment costs. The draft item highlights the FCC’s recent emphasis on spurring the creation of next-generation wireless networks and follows recent moves to exempt certain deployments from environmental/historic preservation reviews and prohibit moratoria on infrastructure projects. Under its latest proposal, the FCC would: (1) restrict the types of fees assessed on deployments; (2) limit the aesthetic requirements imposed on deployments; and (3) establish “shot clocks” on responding to deployment requests. The action is likely to result in legal challenges from state and/or local governments. You will find more about the FCC’s anticipated reforms as well as potential Congressional action on this issue after the jump.
Continuing its focus on broadband infrastructure deployment for 5G technologies, the FCC announced that it plans to eliminate regulatory impediments that delay and increase the cost of wireless deployments at its next meeting, scheduled for September 26, 2018. The item would alter the balance of power between wireless broadband providers and state/local governments concerning control over rights of way and deployment fees. The FCC also anticipates initiating a rulemaking aimed at improving 911 dialing and location accuracy for multi-line telephone systems (“MLTS”), potentially imposing new compliance obligations on office building, hotel, and other large facility managers. Rounding out the major actions, the FCC released draft items that would: (1) permit toll free numbers to be auctioned and sold on the secondary market and (2) consolidate rules and expand the spectrum available for so-called Earth Stations in Motion (“ESIMs”) that provide high-speed broadband service to vehicles, aircraft, and vessels. The proposed items will generate input from all corners of the communications industry as well as real estate interests. You will find more details on the significant September FCC items after the jump:
After a year of heated debate between pole owners and service providers, the FCC is poised to adopt a one-touch make-ready (“OTMR”) process for the “vast majority” of pole attachments at its meeting on August 2, 2018. Late last week, the FCC released a draft Order and Declaratory Ruling that would implement a streamlined process for service providers to bypass certain pole owner requirements in order to gain access to poles to attach new facilities. Chairman Pai has touted the new procedure as hastening broadband deployment by allowing for faster, cheaper pole attachments. The FCC expects significant growth in pole attachments as service providers install the small cells necessary to support 5G technologies.
The FCC will focus on 5G spectrum and the infrastructure supporting next-generation broadband services at its meeting planned for August 2, 2018. Continuing its push to make more spectrum available for flexible wireless use to support 5G technologies, the FCC teed up two major spectrum-related items for its August Open Meeting, which comes hot on the heels of its July 12 meeting. The items would open up 1.55 GHz of spectrum for commercial use through two auctions, with the first auction set to begin later this year. The FCC also plans to take a major step forward in supporting broadband deployment by adopting a long-anticipated “one-touch make-ready” regime for pole attachments, while taking aim at deployment moratoria. Rounding out the major items, the FCC will seek comment on launching a $100 million Connected Care Pilot Program. The proposed items maintain the trend of jam-packed Summer FCC meetings (which will then take a break until September 26) and will be sure to generate input from all communications industry sectors. You will find more details on the significant August FCC items after the jump:
In a document released the day before Thanksgiving, the FCC issued three orders and initiated yet another round of rulemaking in its Spectrum Frontiers proceeding aimed principally at making almost two gigahertz of additional millimeter wave (“mmW”) spectrum available for terrestrial commercial use while confirming other mmW frequencies for satellite use. Continuing its break-neck pace in the Spectrum Frontiers docket – a notice of inquiry, three notices of proposed rulemaking, two reports and orders, and a memorandum opinion and order in just over three years – the FCC underscored its “priority [in] making spectrum available quickly so that it can be utilized by potential users, technology developers, and innovators.” In numerous places throughout the recently released orders, the FCC opted against adopting regulations because they might have the adverse side effect of preventing new technologies and services being able to exploit the mmW bands.