Agreement on ORAN Funding Needs Dominates Hearing

The revised Endless Frontier Act, like last year's version (see 2006010011), would redesignate the National Science Foundation as the National Science and Technology Foundation and establish a “Technology Directorate” with $100 billion to advance 10 technology areas in which China is seeking to overtake the U.S., including 5G and AI. It would allocate $9.5 billion to establish regional tech hubs and $2.4 billion for a National Institute of Standards and Technology-coordinated "Manufacturing USA" program to promote "innovation and growth in domestic manufacturing,” including chips.

There’s “bipartisan consensus that the U.S. must invest in the technologies of the future to outcompete China,” Schumer said on the Senate floor. “Whichever nation develops new technologies first, be they democratic or authoritarian, will set the terms.” Observers noted six Senate Republicans signed on with GOP lead Sen. Todd Young of Indiana as original co-sponsors -- Roy Blunt of Missouri, Susan Collins of Maine, Steve Daines of Montana, Lindsey Graham of South Carolina, Rob Portman of Ohio and Mitt Romney of Utah. Rep. Mike Gallagher of Wisconsin is the lead House Republican co-sponsor.

Schumer again emphasized his desire for the Senate to advance the Endless Frontier Act as a “central” part of a “bipartisan competitive-related” legislative package during spring or summer. The Senate Commerce Committee is likely to mark up the Endless Frontier Act next week, in keeping with Schumer’s fast-track push, aides told us. “We will also push” for that package to include “emergency spending to implement the bipartisan semiconductor manufacturing provisions” from the Creating Helpful Incentives to Produce Semiconductors for America Act text included in the FY 2021 National Defense Authorization Act (see 2101030002), Schumer said.

Biden backs the Endless Frontier Act as an “encouraging sign of the bipartisan support for investing in America’s competitiveness,” said White House Press Secretary Jen Psaki. Biden “shares the co-sponsors’ commitment to making a bold investment in American innovation” and “welcomes the bill’s focus on strengthening American supply chains.” BSA|The Software Alliance, the Information Technology and Innovation Foundation, Semiconductor Industry Association and TechNet endorsed the measure.

House Hearing

Congress “must fund” implementation of the Utilizing Strategic Allied (USA) Telecom Act to invest spectrum auction proceeds to create an NTIA-managed ORAN R&D fund, said House Commerce Committee Chairman Frank Pallone, D-N.J., during the Communications hearing. “We need to make sure that all providers, including small providers and communities, have the resources and technical assistance to leverage this technology. But we cannot stop there; we need to leverage our federal agencies to review the security issues presented by consumer equipment.” Congress enacted the USA Telecom Act as part of the FY 2021 NDAA.

House Communications Chairman Mike Doyle, D-Pa., cited the Endless Frontier Act and the Biden administration’s infrastructure spending proposal (see 2103310064) among “opportunities” for Congress to fund the USA Telecom Act and spur “major investment that can help the U.S. reassert leadership in” 5G. The U.S. needs “national policies” on 5G “that aren’t just built for the moment” and go beyond the funding to reimburse U.S. telecom companies that replace suspect network equipment under the Secure and Trusted Communications Networks Act (see 2012210055), Doyle said.

“We need to plan and legislate for the future, particularly in critical and fast-growing areas like 5G and beyond,” Doyle said. “It's become clear that lower costs are a driving force for wireless providers to use cheaper Chinese vendors.” As “we look at networks and other countries, we can see so many folks struggling with this,” he said.

House Commerce ranking member Cathy McMorris Rodgers, R-Wash., wants the USA Telecom Act “to be funded quickly to spur the development of a robust, trusted equipment marketplace.” As “we remove untrusted equipment from our domestic networks, we must look to the future and consider what the availability of trusted vendors will be in the years to come,” she said. “We do not want countries like China making the rules and leading in technologies, like 5G and 6G, that could give them so much control over American lives and industries.”

“It is crucial that Congress funds” USA Telecom Act implementation, said House Communications ranking member Bob Latta, R-Ohio. “By enabling providers to move away from end-to-end product lines and mix and match vendors inside their networks, [ORAN] can help reduce reliance on foreign equipment and ensure that problematic components of a network’s architecture can be easily swapped out. It will also help trusted suppliers remain economically competitive against Huawei and others seeking to undermine our national security.”

Witnesses urged O-RAN funding.

“Funding provided by” the USA Telecom Act “will help bolster advanced wireless networks and future-proof our telecommunications systems,” said ORAN Coalition Executive Director Diane Rinaldo. "Fund the programs at a significant level in order to drive innovation and deployment in open and cloud-based systems,” said Rakuten Executive Vice President Tareq Amin. The funding “will provide [ORAN] companies like [JMA Wireless] a financial boost to develop and manufacture leading-edge products that will be used in 5G networks” around the world, said JMA CEO John Mezzalingua. “The funds will benefit U.S. suppliers and U.S. leadership in several ways, including by helping American innovators build manufacturing facilities to produce open and interoperable network components,” said Mavenir Senior Vice President-Business Development John Baker.

Bogdan-Martin

Pallone and McMorris Rodgers endorsed Doreen Bogdan-Martin’s candidacy for ITU secretary general (see 2104020039).

The Biden administration’s support for Bogdan-Martin “demonstrates a commitment to a more inclusive and sustainable global digital landscape,” Pallone said. “The Chinese government cannot be trusted to set the standards that govern our wireless future,” said House Commerce Committee Chairman Frank Pallone, D-N.J., during the Communications hearing. “Instead, we must help our own nation and like-minded democracies once again lead in technological innovation and preserve a secure and free marketplace.”

Bogdan-Martin “shares the values of openness, transparency and connectivity for all,” McMorris Rodgers said. It's “critical that we encourage trusted companies to participate and lead in international standards bodies and make sure Americans are at the helm,” she said.

Pallone and Doyle continued to press federal agencies to dispense with the spectrum fracas that emerged throughout former President Donald Trump’s administration among the FCC, NTIA and other entities (see 2104190062). “It’s important we work together to put our airwaves to the best possible use while addressing legitimate safety concerns,” Pallone said. “It is critical that NTIA play the role given to it by Congress to manage federal spectrum resources, and the White House needs to make that clear to all federal agencies and stakeholders,” Doyle said.

Lawmakers also touted other bills, including the newly refiled Understanding Cybersecurity of Mobile Networks Act. It would require NTIA report on cybersecurity of wireless networks and vulnerabilities to cyberattacks and surveillance by adversaries.