Global IT spending on cloud-based infrastructure grew 2.2% in Q1, while investments in “non-cloud environments plunged 16.3%, reported IDC Thursday. “The broadening impact of the COVID-19 pandemic was the major factor driving infrastructure spending,” it said. “Widespread lockdowns across the world and staged reopening of economies triggered increased demand for cloud-based consumer and business services.” IDC forecasts the Q1 pace “will continue through rest of the year as cloud adoption continues to get an additional boost."
Auction 903 and rural broadband experiment funding recipients have a limited waiver until the end of 2021 from letter of credit rules, the Wireline Bureau said Friday. Skybeam and the Connect America Fund Phase II Coalition petitioned for waivers to conform with recent Rural Digital Opportunity Fund rules (see 2003110034). Staff said waiver is justified given how the pandemic has increased demand for broadband while impeding business.
Revenue in CalAmp’s LoJack business was $6.6 million in Q1 ended May 31, down from $11.2 million in Q4, said Chief Financial Officer Kurt Binder on a Thursday investor call. It’s the first time CalAmp broke out that stolen-vehicle recovery business it bought four years ago, he said. Executives charted a future for that business. The stock closed 8.9% higher Friday at $8.37. It's moving to "aggressively transition it to a subscription-based business model” from a one-time stand-alone device sale, said Binder. He blamed the revenue decline on the “slowdown in device installations” due to the COVID-19 pandemic shutdown. Installations “got better” as fiscal Q1 progressed, and “more of the markets around the country opened up,” said interim CEO Jeff Gardner. “But it was a struggle.” Reopenings take place “at a different pace,” “depending on the region or the state,” he said. LoJack is “challenged from a performance perspective,” said Gardner. “It's one of my top objectives to begin transitioning this business to a recurring revenue model that offers significant value to our dealer partners and their customers, similar to a model that we provide to all of our international businesses.” The business suffers because its “legacy” product runs on a proprietary RF frequency out of step with the automotive industry, said Gardner: “The world's really moving to telematics,” and LoJack is playing catchup.
With more employees working from home now, and possibly beyond the COVID-19 pandemic, home network security is a growing concern, experts told a webinar with cybersecurity company Bitdefender. Nearly 80% of U.S. consumers surveyed by Parks Associates are concerned about a data security break or privacy issues, said analyst Brad Russell. The increasing time households are spending on their Wi-Fi networks heightened home network exposure to phishing attacks, Russell noted. WFH puts the home network “in a completely different spotlight,” said Alex Balan, Bitdefender chief security researcher. Bitdefender is tracking 350 IoT-oriented botnets in its labs that are compromising such smart home devices as routers, power outlets, smart cameras, printers, smart TVs and connected coffee makers. Eventually, all devices in the home will be connected and the number of attacks on home networks will “dramatically expand,” said Balan. Vulnerabilities are present in 90% of the devices Bitdefender analyzes, he said, and are “very difficult to defend against.” Consumers can’t buy anti-virus software “for a smart light bulb or a Roomba,” he said. “You don’t know how to tackle security for your smart devices.” The average broadband household has 22 devices, up from 12-15 two years ago, said Razvan Todor, Bitdefender director-connected home security, and that will keep growing. “We’ve just now become painfully aware that we need to protect them,” ideally from a single point, said Todor. ISPs can help with cybersecurity, while clearing up their networks with fewer distributed denial-of-service attacks, experts said.
The Wireless Bureau released an electronic process for FCC licensees to apply for expedited Section 106 historic review or emergency authorization of wireless facilities during the COVID-19 pandemic. Advisory Council on Historic Preservation rules “include provisions to allow certain critical infrastructure projects to proceed under expedited Section 106 review during emergencies such as the COVID-19 crisis,” said a notice in Friday’s Daily Digest. “The Commission may issue emergency authorizations for infrastructure projects critical for responding to emergency situations."
Microsoft is closing its physical stores and will provide sales, training and support remotely, it said Friday. The company will “reimagine” spaces that serve customers, including Microsoft Experience Centers in New York; London; Redmond, Washington; and Sydney. Store closings will result in a pretax charge of $450 million, to be recorded in Q2. “Our sales have grown online as our product portfolio has evolved to largely digital offerings," said Microsoft Corporate Vice President David Porter. The company has been serving customers remotely over the past few months during the pandemic, he said. New online services include 1:1 video chat support, online tutorial videos and virtual workshops.
Sens. Maggie Hassan, D-N.H., and Tom Carper, D-Del., urged the FCC, DOJ and IRS Friday to “aggressively” crack down on robocall scams about the COVID-19 pandemic. They wrote FCC Chairman Ajit Pai, Attorney General Bill Barr and IRS Commissioner Charles Rettig: “Government and industry should always cooperate to fight illegal robocalls, but it is even more critical at a time when so many Americans are facing economic and health concerns.” The senators’ letter to Pai noted FCC recent actions, including a $225 million fine against robocall businesses Rising Eagle Capital and JSquared Telecom and their principals (see 2006090044). Only “a negligible amount of the hundreds of millions of dollars in FCC-levied fines against robocallers since 2015 have been actually been collected by” DOJ, the senators said. “This poor track record raises concerns that scammers using robocalls to deceive consumers and exploit anxiety associated with the COVID-19 public health emergency will be able to act without significant fear of reprisal, and never made to disgorge the ill-gotten proceeds.” The lawmakers sought recommendations whether further legislation is needed “to ensure that the FCC and DOJ work closer together and actually recoup fines that the FCC levies against robocallers.” They want to know whether six gateway providers the FCC and FTC contacted in April (see 2004030052) have cut traffic allowing pandemic-related scam robocalls originating outside the country into the U.S. The two agencies sent a second round of letters to the providers in May (see 2005200053). The FCC, DOJ and IRS didn’t comment.
The FCC should expedite launch of a $9 billion 5G Fund, not wait to hand out money in 2023 when better maps are available, NARUC, the Rural Wireless Association and other commenters told the FCC. T-Mobile said the NPRM puts too much emphasis on buildout commitments agreed to as part of the Sprint deal. Comments were due Thursday in docket 20-32. Commissioners approved the NPRM in April over partial dissents by Commissioners Jessica Rosenworcel and Geoffrey Starks, concerned about delays (see 2004230046).
The COVID-19 pandemic shows no single solution will fully address the U.S. digital divide, and wireless will play a bigger role worldwide, FCC Commissioner Mike O’Rielly said at the virtual European Spectrum Management Conference Friday. Commissioner Jessica Rosenworcel stressed the importance of flexible-use rules and said the agency needs to learn the right lessons.
The next National Broadband Plan shouldn't be a 10-year project and shouldn't be assigned solely for the FCC to conduct and implement, said New Street's Blair Levin during a Friday FCBA webinar with panelists who worked on the original National Broadband Plan before it was released as a report to Congress 10 years ago (see 1003170154). Their consensus now is it should be shepherded outside the FCC to gain broader buy-in across government (see 2003030030). Suggestions for NBP ownership included NTIA, the Commerce Department or the White House.