The COVID-19 pandemic comes as Ajit Pai enters what is likely to be the homestretch of his time as FCC chairman. Pai has sketched out an ambitious agenda for the rest of 2020, but no one knows how long the pandemic will last. Industry officials agree it will likely slow work on at least some items due to refocusing on coronavirus-related orders. The crisis offers Pai a chance to write a new legacy, they said.
Ad-supported over-the-top video might be able to tap into the $70 billion TV advertising market thanks to live sports' mass cancellations due to COVID-19 and advertisers that had depended on those events to reach viewers, nScreen Media analyst Colin Dixon blogged Wednesday. He said the longer pandemic issues go on, the more time advertisers will have to see if advertising on OTT works.
Additional MVPDs endorsed requests there be no blackouts of TV station programming on pay TV during the COVID-19 pandemic. FCC Chairman Ajit Pai and NAB CEO Gordon Smith and others sought similar pledges (see 2003180036). Comcast agrees, a spokesperson emailed Wednesday. "We all need to work together to avoid service disruptions during this time.” Dish Network "is committed to ensuring that our customers have access to critical local news coverage regarding COVID-19,” said Senior Vice President-Programming Andy LeCuyer in a statement. “We appreciate the cooperation of broadcasters who share our goal, and together we've restored 49 channels across 39 markets, while continuing to work toward long-term agreements."
To rise to U.S. challenges from the COVID-19 pandemic, respond with "a broadband plan robust enough to withstand the challenges and seize the opportunities of this new, and already frighteningly novel, decade," Benton Institute for Broadband & Society Senior Fellow Jonathan Sallet wrote Thursday on the anniversary of the first 10-year National Broadband Plan. He wants investments in scalable networks with a baseline performance of symmetrical 100/100 Mbps (see 1910300005). He wants industry and policymakers to consider families, "adults working and videoconferencing, a K-12 student with online homework, a college student returned home to finish the second semester with virtual classes. Then multiply that by many kinds of households."
The global mobile device market had “mass disruption” to its production and supply chains due to labor shortages and inactive logistics resulting from the COVID-19 pandemic that hit China last month, reported ABI Research. The U.S. imported 214.6 million smartphones last year, 74.6% from China, said Census Bureau data we accessed through the International Trade Commission. China was 75.8% of the 14.4 million smartphones imported to the U.S. in January. Import data from February and March are expected to show a COVID-19 impact on reduced Chinese cargo. Supply chain partners such as Qualcomm, Broadcom, Qorvo and Skyworks faced shrinking smartphone demand; first half production could drop by as much as 30%, ABI forecast Wednesday. The 5G rollout will feel adverse effects from the disruptions, which will suppress near-term growth of the next-generation handsets, said the report. A move to lower price tiers was expected to be a key driver for boosting 5G smartphone shipments this year, but now it’s expected that shipment volume for 5G smartphones will be “much lower than previously expected, slowed by a stagnant supply chain and crippled demand,” it said. The market is expected to face disruptions and delays. Global business smartphone units will ship 12% fewer smartphones to enterprises in 2020, Strategy Analytics predicted.
The FCC will allow 3.65 GHz licensees whose licenses expire starting April 17 to wait until Oct. 17 to transition from Part 90 to Part 96 gear, it said in an expected move (see 2003160049). The FCC said it can take the action without delaying the June citizens broadband radio service or the December C-band auction. “This is a logical delay of the transition during the pandemic to ensure that current licensees, like [wireless ISPs] and electric utilities, can keep their eyes on the ball when it comes to helping consumers,” said Chairman Ajit Pai: “We can allow this flexibility while still maintaining a reasonable timeline for this transition.” The Wireless ISP Association had been seeking relief and applauded the change. “For now, it prevents thousands of rural customers from losing service -- something especially important given the role Internet connectivity will play in keeping us safe and in touch with the world during the COVID-19 pandemic,” WISPA said.
Four Senate Democrats and House Communications Subcommittee Vice Chair Doris Matsui, D-Calif., pressed the FCC on Lifeline access matters amid the COVID-19 pandemic. Three other Senate Commerce Committee Democrats urged the FCC Thursday to create a “consumer-friendly web portal” to help Americans find Wi-Fi hotspots, telecom companies’ contact information and federal assistance information. “The coronavirus and resulting public safety measures taken by states, municipalities, and vigilant citizens are a resounding demonstration of the importance of Lifeline and other FCC assistance programs," Sen. Richard Blumenthal, D-Conn., and the others said Thursday in a letter to FCC Chairman Ajit Pai. “We strongly urge the FCC to commit that no one loses access to Lifeline at this time of crisis.” The commission should “take swift steps to provide information about Lifeline to the public and ensure carriers more aggressively advertise their Lifeline services to all eligible individuals,” the senators said. “Americans must know that help is available.” The other three senators who signed were Communications Subcommittee ranking member Brian Schatz, D-Hawaii; Michael Bennet, D-Colo.; and Ed Markey, D-Mass. Matsui wrote Pai Wednesday to “take immediate steps to provide any Americans that become eligible for Lifeline due to effects of COVID-19 access to the support they need as quickly as possible.” She’s “pleased to see that recertification and reverification activity will be put on hold for the immediate future to prevent unnecessary service interruptions for current Lifeline subscribers. However, these steps will not do anything to assist Americans that become eligible for Lifeline or other qualifying assistance programs due to a loss in work or drop in income.” An FCC spokesperson pointed to Pai's success at getting ISPs to keep everyone online for the next 60 days amid the coronavirus (see 2003130066). Pai has also "exhorted those companies with low-income broadband programs like the Connect2Compete program to expand and improve them (for example, by increasing speeds to 25/3 Mbps and expanding eligibility) and those without to adopt such programs," the FCC spokesperson emailed. "He also called on broadband providers to relax their data cap policies in appropriate circumstances and on those that serve schools and libraries to work with them on remote learning opportunities. In the meantime, Commission staff have been busy at work exploring additional ways to keep students and all Americans connected during the coronavirus pandemic."
The FCC and House Commerce Committee leaders say they’re pushing for remote learning and telehealth funding to be included in a third legislative package aimed at economic losses and a possible recession caused by the COVID-19 pandemic. Senate Democrats have been pushing for additional funding legislation to address pandemic-related infrastructure issues, including broadband capacity and distance learning resources (see 2003180066). Senate Majority Leader Mitch McConnell, R-Ky., was expected to unveil a separate proposal for the funding bill late Thursday. The FCC wants funding for “in-home devices for use by teachers, students, and patients,” something "the Communications Act does not authorize the FCC to subsidize," a spokesperson said. The House Appropriations Committee is considering telehealth funding as part of the next legislative package, a spokesperson said. House Commerce is “examining all options to ensure that all Americans have the connectivity they need throughout this crisis,” said Communications Subcommittee Chairman Mike Doyle, D-Pa., in a statement. Committee Republicans are also “working with the FCC to figure out how we can use our resources most effectively for those who need them most as we work towards long-term policies to close the digital divide,” a spokesperson said.
President Donald Trump’s renomination of FCC Commissioner Mike O’Rielly Wednesday drew widespread praise. O’Rielly would serve a term ending June 30, 2024 (see 2003180070). His current term ended in June, but he can remain until this Congress ends at the beginning of 2021 (see 1910250039). “I am deeply appreciative of the President’s decision and his aggressive leadership on communications policy, including extensive efforts to bring broadband access to all Americans,” O’Rielly said. As a commissioner “I have advocated for preserving and advancing American free market principles to develop common sense regulation and eliminate unnecessary rules that hurt consumers.” It’s “gratifying to watch the private and public sectors pulling together to rise to the occasion” amid the COVID-19 pandemic and other “monumental challenges currently confronting our nation,” he said. Trump “made a wise choice,” said FCC Chairman Ajit Pai. O’Rielly has “made many contributions to the work of the Commission, from his leadership on 3.5 GHz spectrum policy to his unwavering advocacy against state misuse of 911 funding. And when we were in the minority, he consistently stood on principle while being pragmatic.” O’Rielly’s “tireless work ethic has helped deliver many good wins for this country during his time on the Commission,” said Commissioner Brendan Carr. O’Rielly “is incredibly knowledgeable on communications policy matters and has contributed so much to the work of the agency,” said Commissioner Jessica Rosenworcel. Commissioner Geoffrey Starks also congratulated O’Rielly. CTIA President Meredith Baker highlighted O’Rielly for being “a champion for smart spectrum policies, ending 9-1-1 fee diversion.” NAB “supports the renomination,” said CEO Gordon Smith. Charter Communications, Comcast, the Competitive Carriers Association, Incompas, Wireless Infrastructure Association and Wireless ISP Association also applauded the renomination.
FCC Commissioner Brendan Carr isn't backing down from comments on Twitter earlier in the week criticizing China for spreading false reports that the U.S. is responsible for COVID-19, he told a Broadband Breakfast teleconference Thursday. Carr said more FCC actions on the pandemic are on the way. “We’re going to be in for a tough time,” he warned. So far, networks seem to be holding up, he said.