S&P Global says there's a "negative outlook" for Tegna due to projected reductions in advertising spending related to COVID-19. "While our expectations for retransmission and political advertising revenue remain unchanged, we expect advertising revenue will decline materially over the next year due to the spread of the virus," the debt ratings firm emailed Tuesday. "We could revise the outlook to stable if the pandemic has a limited effect on TEGNA's business." The already below investment grade issuer credit rating was lowered a notch to "BB-". S&P says the pandemic could affect Sinclair (see 2003190048).
Smartphone production could fall 30% during 2020's first half from coronavirus disruptions, said ABI Research Tuesday. “Ripples from China will be felt globally,” said David McQueen, calling mass disruption to production lines and stalling of supply chains due to labor shortages and inactive logistics “disastrous.” With China the world’s manufacturing center for most smartphones -- and a top market -- the sector has been hardest hit by delayed shipments and a “weakened development of next-generation products,” he said. A move to lower price tiers was expected to boost 5G smartphone adoption this year, but the pandemic will push out development and shipments of affordable models, McQueen said. Though the outbreak is expected to come under control by the end of Q2, it will take time for consumer confidence to return, said the analyst.
President Donald Trump signed the Secure 5G and Beyond Act (S-893) and Broadband Deployment Accuracy and Technological Availability Act broadband mapping legislative package (S-1822) Monday, to applause from lawmakers and FCC Chairman Ajit Pai. S-893 requires the president to develop a strategy for ensuring the security of 5G networks and infrastructure (see 2003110074). S-1822 requires the FCC to collect more granular broadband coverage data and create a user-friendly challenge process. It includes language from the House-passed Mapping Accuracy Promotes Services Act (HR-4227), which would bar companies from knowingly giving the FCC inaccurate broadband coverage data (see 2003110071). Trump said he will apply a section of S-893 requiring the president engage in international diplomacy to share information and pursue policy goals specified by Congress “in a manner that does not interfere with the President's exclusive constitutional authorities with respect to foreign relations.” Trump believes a section that “purports to condition the President's authority to implement parts of” the 5G security strategy “upon the approval of” the FCC “does not preclude me or future Presidents from exercising our constitutional authorities as the ‘sole organ’ of the Nation in foreign relations and as the head of the unitary Executive Branch.” S-893 and S-1822 “are critical to ensuring that all Americans can access broadband and that our networks are secure,” said House Commerce Committee Chairman Frank Pallone, D-N.J., ranking member Greg Walden, R-Ore., Communications Subcommittee Chairman Mike Doyle, D-Pa., and ranking member Bob Latta, R-Ohio. "The need for connectivity is even more critical now that millions of Americans are teleworking and learning from home in response to the coronavirus pandemic.” To "close the digital divide, we need accurate maps to show where there is broadband service and at what speeds," said Senate Commerce Committee Chairman Roger Wicker, R-Miss. Pai said the law “affirms the FCC’s approach to collecting more precise and granular broadband data through our new Digital Opportunity Data Collection program" and it's "vital for Congress to provide the FCC as soon as possible with the appropriations necessary to implement the Act." S-1822's prohibition on Universal Service Administrative Co. means "if Congress does not act soon, this well-intentioned legislation will have the unfortunate effect of delaying rather than expediting the development of better broadband maps," he said.
DOJ and the FTC will provide expedited antitrust review and guidance for COVID-19 public health ventures, the agencies announced Tuesday. Businesses may need to combine production to provide resources in the pandemic, the agencies said. Expedited procedures will allow the agencies to respond within seven days to all COVID-19-related requests addressing public health and safety, the agencies said. This quicker turnaround is “designed to provide guidance to businesses concerned about the legality of proposed conduct under the antitrust laws,” the agencies said. The FTC is committed to “doing everything we can to help with these efforts, while continuing to aggressively enforce the antitrust laws,” Chairman Joe Simons said. DOJ said the agencies will hold accountable any entities using the pandemic to engage in antitrust violations, citing price-fixing, bid-rigging and market allocation. The FTC and DOJ also committed to expedite National Cooperative Research and Production Act requests for “flexible treatment of certain standard development organizations and joint ventures.”
The COVID-19 pandemic shows the critical need for internet access, said state broadband officials on a Schools, Health and Libraries Broadband Coalition webinar Tuesday. “When we get through this, the silver lining for me will be if we’ve identified where we need broadband, how we’re going to fund that broadband and set a national and state strategic plan to getting there,” said Colorado Broadband Office Director-Federal Broadband Engagement Teresa Ferguson. The coronavirus “has brought home the point many of us have been trying to make for years” that broadband must be a priority, she said: “It is not enough just to fund to the anchor institutions,” but to go “through to the home.” Tennessee “will continue to focus on funding the deployment of infrastructure as well as digital literacy and adoption,” said Department of Economic and Community Development Broadband Director Crystal Ivey. Many states with broadband funding lack dedicated digital literacy support, so Ivey will watch whether the pandemic affects the amount of funding dedicated to increasing adoption, she said. “We’ve known the importance of connectivity for our communities, but as more of us are being asked to stay home from work and school, the issue is being elevated even further.” With so many working at home, broadband’s importance is “really becoming increasingly evident” (see 2002270006), said Pew Broadband Research Initiative Officer Anna Read.
Anecdotal evidence suggests people are heeding government guidance and staying home, T-Mobile Chief Technology Officer Neville Ray blogged Tuesday. In New York City, the carrier is seeing an 86% increase in subscribers connecting to cellsites only in their primary location. The San Francisco Bay Area has a 77% increase “and we’re seeing similar patterns across the country,” Ray said. People are texting more and playing videogames, he said: Videogame traffic is up 45%. “While overall data traffic is higher, the overall contribution to total network loading has been relatively minor," the CTO wrote. That mobile data and Wi-Fi traffic are soaring during the pandemic shows why AT&T, Verizon and T-Mobile were “keen to borrow fallow spectrum” from Dish Network, New Street’s Jonathan Chaplin wrote investors. “AT&T is in the process of increasing its capacity by 60% with its own new spectrum; if Verizon and T-Mobile are seeing a 40% increase in mobile traffic, with no new spectrum of their own to bring to bear, we would assume their networks would be showing strain,” the analyst said: Dish’s spectrum may prove important “beyond the next 60 days” and loans may be converted to leases. In-home data usage this month through March 17 was up 18% from the same period a year earlier, said Comscore Tuesday. Mobile phones, smart speakers, connected TVs and streaming boxes had the biggest increases, it said: "If the current quarantines continue across the country, we expect this upward data usage trend to continue.” The deployment of borrowed spectrum is having a noticeable effect, based on new data from Opensignal, Lightshed’s Walter Piecyk told investors. T-Mobile “doubled the amount of 600 MHz spectrum deployed for LTE in the top 100 markets, on average to 20 MHz from 10 MHz” and “quadrupled deployments to 40 MHz," the analyst wrote, "in markets like New York, Boston, and Salt Lake City.”
House Commerce Committee ranking member Greg Walden, R-Ore., urged ISPs and wireless carriers Tuesday to temporarily make available as much data as possible to customers amid increased reliance on home networks during the COVID-19 pandemic. He noted many ISPs agreed to FCC Chairman Ajit Pai’s call for them to keep everyone online during the epidemic (see 2003130066), but “more can be done.” Increasing “data caps for hotspots is the fastest way to connect Americans temporarily who do not have Wi-Fi at home,” Walden said. That “temporary action can fill the gap during this crisis,” but “it could cause network congestion in the long-term if everyone were to rely on this access. We must not lose sight of the bigger problem: the need to deploy broadband in the long-term.” The “broadband divide has never come more clearly into focus than now where states, including Oregon, are saying online school work won’t count in part because not all students have access to broadband,” he said. CTIA didn't comment.
The FCC Technological Advisory Council heard early reports from working groups at an online meeting Tuesday. TAC Chairman Dennis Roberson warned the COVID-19 crisis might well not be over when the group next meets June 9. The kind of work TAC does is more important than ever, said Roberson, executive chairman of entigenlogicTM. Last year, TAC’s work was slowed by the prolonged federal government shutdown, Roberson said. That was “nothing compared to what we’re dealing with now, of course,” but TAC never got started until June, he said.
Congressional leaders were optimistic Tuesday afternoon they were close to reaching a deal on a third economic stimulus bill addressing the effects of COVID-19, after days of wrangling over legislative language on funding for telecom and other priorities. House Speaker Nancy Pelosi, D-Calif., was among those saying a deal appeared near, though she warned House Democratic leaders could move forward on a counterproposal if they deem final Senate bill language unsatisfactory. The Pelosi-led counterproposal drew fire from Republicans in part because it contains pandemic-specific Lifeline funding (see 2003230066).
The FCC has been pleased to see industry take-up of its "keep Americans connected" pledge and its push to expand low-income offerings, and doesn't anticipate asking edge providers to throttle their streaming video quality to ensure adequate data network capacity, said Evan Swarztrauber, an aide to Chairman Ajit Pai, in a Recon Analytics web conference Tuesday. The European Union asked streaming services like Netflix and YouTube to reduce their data traffic. Deploying 5G could face some COVID-19 headwinds due to the workforce issues getting antennas installed, Techsponential President Avi Greengart said.