O'Rielly Says 5G Race Key to Next 20 Years; Contractors Seen as Best State Net Neutrality Path

Venable's Phil Verveer later disputed there's a global 5G race. He and other panelists debated FCC and Broadband Deployment Advisory Committee infrastructure efforts. They agreed state actions to promote net neutrality through government contractor procurement policies have a better chance in court than general state net neutrality measures, and some also said regulators ultimately have to tap broadband to fund USF. New England states are working on such bills (see 1805070029).

Moderator Scott Harris of Harris Wiltshire questioned previous O'Rielly comments about a 5G race and the need to resist foreign industrial policies (see 1804190045). O'Rielly responded that competitors, aware of U.S. 4G leadership, are attempting to use standard-setting bodies, international spectrum allocations and equipment manufacturing to get an edge and reap broad economic benefits from next-gen leadership. The U.S. is focused on channeling market forces and removing barriers to encourage private 5G deployment, and must ensure other countries don't use industrial policy to thwart American companies, he said. Verveer said there isn't a 5G race, and he expects new wireless networks and services to emerge over time.

Spectrum and infrastructure are big keys to 5G, with a skilled workforce also important, said Carr, who believes large companies can "self-provision" skills but smaller ones can't. The FCC has no direct role, but it can highlight job training, he said, noting roundtable discussions he attended.

NTIA, BDAC Efforts

NTIA is implementing 2015 spectrum act requirements that it identify 30 MHz of government spectrum below 3 GHz for auction, plus another 100 MHz, said Administrator David Redl. He said NTIA approved two agency plans for getting advance funding to free up spectrum for commercial use at 1675-1680 MHz and 1300-1350 MHz. NTIA "has a lot of work left to do" on the 3450-3550 MHz band seen as the next reallocation candidate, he said, noting it's largely occupied by DOD users. NTIA is working with the FCC on the adjacent 3.5 GHz citizens broadband radio service band, he said, and with the FCC also looking at 3.7-4.2 GHz, a broad new mid-band swath is possible. NTIA is beginning to plan for the 2019 World Radiocommunication Conference, he said.

Redl said NTIA is looking to promote rural broadband by making federal properties and assets available for commercial use, coordinating funding streams with the Rural Utilities Services, and using $7.5 million in new funding and working with the FCC to update a broadband map.

FCC and BDAC efforts to speed wireless buildout sparked debate. Carrier deployment is a market-by-market "slog," said Tony Clark, Wilkinson Barker senior adviser. He said there's some reason for optimism: at least a dozen states have adopted streamlined procedures and FCC "bumpers" could provide "greater definition" and guidance to states and localities. There's a "natural tension" between communities and industry, and a need for "balanced" BDAC perspectives, said Sherry Lichtenberg, National Regulatory Research Institute telecom principal. USTelecom Vice President Diane Holland defended BDAC's membership, calling providers best suited to identify deployment barriers. Communities want 5G but have legitimate concerns about siting details, said Verveer, who called BDAC efforts "valuable" and saw "sensible" agreements coming.

State Actions

Panelists sparred over state efforts to counter FCC rollback of net neutrality regulations.

Holland said 50 different sets of rules would make it difficult for companies to deploy: "The chilling of investment is real." One set of rules is more efficient for industry, but states and localities have other values, said Verveer. Clark said state commissions have a big "learning curve," having lost many regulators with telecom expertise, with new members focused on energy matters, but Lichtenberg said state staffers remain strong in telecom.

State net neutrality procurement policies targeting contractors are likely to survive pre-emption efforts, said Verveer, who believes the prospects of general net neutrality legislation are less clear. Lichtenberg agreed states will likely prevail on such contracting measures. Holland said the FCC has a strong case for pre-emption when states undermine the federal broadband regulatory framework; she said states have a better case on procurement matters. Clark agreed procurement arguments are more likely to be sustained, "but it's not a slam dunk."

The FCC eventually must broaden the USF base to assess broadband connections, "where the money is," Verveer said, acknowledging the political difficulty. Some states are already moving state USF toward assessing connections, though the FCC's long-distance voice revenue base is a complication, said Clark, who doesn't see a quick, easy fix. Holland welcomed state moves toward assessing connections and other models, and said the FCC will have to address the issue sometime. Moderator and ITTA President Genny Morelli said the "elephant in the room" is the size of the federal USF.

FCBA Notebook

O'Rielly and Carr addressed other policy issues. O'Rielly cited "some success" in convincing certain states to stop diverting 911 fee revenue to other purposes, but he said others, such as New York, "dug in their heels," requiring new FCC efforts and perhaps congressional legislation. He said the FCC is also having some success against pirate radio stations, though it can be like "whack-a-mole" and pirate radio is spreading beyond Boston, Miami and the New York City area. O'Rielly wants broadcasters to have flexibility to use the ATSC 3.0 TV standard to experiment with new emergency alerts, weather reports, targeted ads and other innovations. Carr hailed "modernization" of "outdated" media rules, whether minor paperwork duties or major ownership issues. He believes FCC enforcement efforts were reoriented from "chasing headlines" to targeting "practical" problems like illegal robocalling and pirate radio.

Carr said he's a "fan" of departing Commissioner Mignon Clyburn, who even if she disagreed on one issue always "reached out" on the next one. He said public engagement on net neutrality and other issues is good but death threats against commissioners "crossed the line." On the lighter side, prodded by Harris, Carr clarified that an ex-girlfriend sent a Facebook message last year to warn him that he was about to make the second biggest mistake of his life in voting to roll back net neutrality, and O'Rielly noted he was called "the most boring man" by comedian John Oliver.

Some panelists were skeptical the FCC can do much to protect national security via network equipment restrictions. Verveer said it's "pretty futile" to try to address the issue through the supply chain. Lichtenberg said it's "very difficult" to figure out what parts of the network are at risk, since some "bad actors" weren't always viewed with suspicion. Holland suggested handsets are also part of the equation.

Verizon doesn't really care about T-Mobile buying Sprint, said Vice President Melissa Tye Friday. After hearing Sprint and T-Mobile disparaged Verizon's 5G capabilities, she said she queried Verizon's business people, who disputed their rivals' claims as "bluffing."

For other FCBA news, on 5G: 1805040058; and on new EU privacy rules: 1805070001.