The FCC has little wiggle room to halt any increases to annual regulatory fees due in 2020 for broadcast licensees, Chairman Ajit Pai said in letters to Reps. Ann McLane Kuster, D-N.H., and Chris Stewart, R-Utah, posted Friday on docket 20-14. They wrote Pai in a letter dated June 15 urging a halt as a way of helping mitigate business disruption from the pandemic (see 2006150058). Pai said the agency is required to assess fees that equal the amount of funds appropriated, but can offer extended payment terms at nominal interest rates, or Congress could modify the existing statutory language to give the agency the ability to provide extension beyond the Sept. 30 fee-paying deadline.
While the FCC eyes sticking with telework at least through next June (see 2007240053), many law firms with communications practices tell us they're taking a wait-and-see stance with the pandemic, with no time frame for returning to their facilities. Others have tentative dates in mind for reopening or have partially reopened. Many see increased telework as the norm post-pandemic.
Commissioners Jessica Rosenworcel and Geoffrey Starks, Public Knowledge and tribal groups slammed the FCC’s 30-day delay of the application window for tribes to apply for 2.5 GHz spectrum, after staff acted Friday (see 2007310027). With COVID-19 a problem in tribal areas, groups had asked for an extra six months, but got until Sept. 2. T-Mobile, the dominant player in the band, told the FCC it was comfortable with a 90-day extension (see 2007300052). The order said 229 applications have been submitted and another 55 applications started by tribal entities as of Friday.
Four more radio broadcasters won’t face monetary penalties after coming forward about political file violations, in consent decrees Thursday. The disclosures in license renewal applications by North Shore Broadcasting, W & V Broadcasting, Cookeville Communications and Center Hill Broadcasting “combined with the exceptional circumstances brought about by the pandemic present a unique situation,” said the FCC Media Bureau. Each group disclosed on applications it couldn't certify its station complied. The broadcasters will be required to adopt a compliance plan and their renewals will be processed. The bureau last week announced similar arrangements with iHeartRadio, Cumulus, Beasley, Entercom and others (see 2007220070).
CEOs think businesses will emerge from the pandemic “using more contract workers and fewer permanent staff,” and videoconferencing will replace much business travel, reported the Conference Board Thursday. It canvassed more than 1,300 CEOs globally, finding only 47% predicting pre-COVID-19 revenue levels return sometime in 2021. Chief executives think the crisis “will compel them to accelerate their digital transformation plans and rethink their business models” but don’t see an urgent need to restructure their supply chains, it said. Flexible work schedules will the biggest change emerging from the pandemic, it said. Permanently increasing the number of employees who can work remotely will be the second biggest.
Some 83% of consumers who use such services had their most recent telehealth visit at least partially paid by insurance, said Parks Associates Thursday. In the past 12 months, 41% of U.S. broadband households used a telehealth service, nearly tripling year over year, it said. The pandemic pushed virtual solutions “to the forefront of healthcare,” said President Elizabeth Parks: Sweeping regulatory changes and changing consumer preferences on remote vs. in-person care created “an enormous shift."
A record-high 71% of U.S. homes were using content streaming or download services when canvassed July 24-26, said CTA Thursday. Nearly one in 10 booked telehealth appointments or other online health services, it said: “Different types of streaming and download services remain a primary way for households to stay entertained during the COVID-19 pandemic, especially as some live sports return to TV, notable new albums drop and exciting video games release.”
Despite being locked out of the U.S. market due to government restrictions, Huawei became the leading global smartphone vendor in Q2, the first quarter in nine years that a company other than Samsung or Apple led, reported Canalys Thursday. The Chinese tech manufacturer shipped 55.8 million devices, down 5% year on year, overtaking second-place Samsung, whose 53.7 million smartphone shipments plummeted 30%. China has “emerged strongest from the coronavirus pandemic, with factories reopened, economic development continuing and tight controls on new outbreaks,” said the research firm. Analyst Ben Stanton attributed results to COVID-19, saying Huawei took “full advantage of the Chinese economic recovery to reignite its smartphone business.” Samsung has less than 1% share in China, while its core markets -- Brazil, India, the U.S. and Europe -- were hit by the coronavirus. It will be hard for Huawei to maintain its lead long term, said analyst Mo Jia, because major channel partners in key regions, such as Europe, are “increasingly wary” of carrying Huawei devices; they're taking on fewer models and bringing in new brands “to reduce risk.” Strength in China alone “will not be enough to sustain Huawei at the top.”
Best Buy CEO Corie Barry sidestepped our questions during her Northern Virginia Technology Council video chat Wednesday (see report, July 30 issue) about how the pandemic was affecting consumer demand for more discretionary tech products like premium TVs. “We haven’t talked about that publicly,” she said. “About a trillion dollars of spend” last year went to sporting events, movies, cruises and vacations, she said. “A minuscule amount of that is being spent right now. Spending is moving into other buckets because of the way we are living our lives. I just think the idea of what might be discretionary and not will evolve over time because we’re living our lives in a way that is completely unique to anything that has come before.”
PayPal rode the pandemic’s e-commerce spike to its “strongest quarter” since eBay spun it off as an independent public company five years ago, said CEO Dan Schulman on a Q2 investor call Wednesday evening. “Merchants are embracing a digital-first strategy, and these trends have fueled the rapid rise of digital payments. These are durable and meaningful tailwinds.” Q2 transactions grew 26% to 3.7 billion, “rivaling the volumes that we usually experience during the five days between Thanksgiving and Cyber Monday,” said Schulman. PayPal added 21.3 million new customers, a 140% increase from the 2019 quarter, he said. “Net new actives” in Q2 exceeded the number of new customers added in all of 2016, he said. PayPal ended the quarter with 346 million active accounts, he said. “Given our momentum, I believe that we will add approximately 70 million net new actives this year.” PayPal is seeing “a tremendous amount of new cohorts coming in that have never used e-commerce before,” he said. Seniors are “the fastest-growing segment of net new actives,” he said. The stock closed 4.3% higher Thursday at $192.51.