The in-flight connectivity market should see annual retail revenue from commercial passengers hit $3.8 billion by the end of the 2020s, Northern Sky Research said Monday. With service providers struggling to balance services with profit, the too-crowded market is crying out for consolidation, NSR said: This year could be "crucial" for the market as revenue is expected to grow by more than 40 percent.
The U.S. economy will take a $2.4 billion annual hit if the Trump administration imposes 25 percent tariffs on connected devices and printed circuit assembles in a third tranche of duties against Chinese imports, said a CTA study released Friday and by Trade Partnership Worldwide. An earlier study said duties on $50 billion worth of Chinese imports, coupled with Chinese retaliation, would reduce U.S. GDP by nearly $3 billion (see 1805010062). Tariffs of 25 percent on IoT-critical connected devices imported to the U.S. from China would cost the U.S. economy $1.8 billion yearly, said the new study. “This single tariff line captures products needed by data centers to make the internet work, networking equipment that most businesses need to connect to the internet and operate office networks, as well as products that consumers need to access the web and enjoy its content.” Without tariffs, CTA forecasts smart speakers will grow to a $3.8 business in terms of 2019 factory sales, with unit shipments of 44.4 million. The association estimates 25 percent tariffs will reduce shipments by 5.3 million units. Bluetooth earbuds, which CTA forecasts will be a $1.4 billion business in 2019 on 14.2 million in factory unit shipments, would take a $588 million revenue hit. Unit shipments would be cut 1.7 million. The Coalition for a Prosperous America stands behind the administration’s plan to “consider” raising the third tranche of duties to 25 percent from 10 percent, and backs software levies, commented the conservative think tank Thursday in docket USTR-2018-0026. Well more than 1,200 comments were posted in the docket Friday, the vast majority opposed to tariffs. BSA|The Software Alliance didn’t comment. Wilson Electronics was burned in the first two tranches of tariffs on RF components and semiconductors it imports to make cellphone signal boosters in Utah, it commented Friday. Now, Wilson supports imposing 25 percent tariffs in the third tranche on finished boosters imported from China under the same heading as connected devices because Chinese competitors use “extremely aggressive pricing tactics to undercut Wilson’s sales." Tariffs on Audio-Technica's Bluetooth headphones and wireless mic systems would "have a significant negative impact on our business," commented its Vice President-Operations Richard Sprungle.
Entities lobbying Capitol Hill and federal agencies on broadband infrastructure issues more than doubled in Q4 compared with the same period in 2016, disclosure filings released through our deadline Tuesday show. Overall lobbying spending by telecom companies and associated groups increased during Q4, though three of the top four carriers -- AT&T, T-Mobile and Verizon -- reported expenditures dropped or remained flat. Tech sector firms' lobbying priorities during the quarter included lawmakers' focus on extremist online content and legislation aimed at curbing online sex trafficking (see 1801230061). Partial figures on Q4 spending were available Monday (see 1801220057). Tech lobbying spending reached a recent high (see 1801230068).
A handful of congressional Democrats have publicly bucked their party’s overall resistance to negotiating with the Republican majority on net neutrality legislation, and they are unlikely to bring their colleagues back to the bargaining table soon, lobbyists told us. Top telecom-focused Capitol Hill Democrats, including Senate Commerce Committee ranking member Bill Nelson, D-Fla., and House Commerce Committee ranking member Frank Pallone, D-N.J., have signaled their party’s lack of short-term appetite for legislation amid FCC possible rollback of 2015 net neutrality rules and reclassification of broadband providers as common carriers under Communications Act Title II (see 1707130063). Some meanwhile wonder if the FCC will OK new rules based on Communications Act Section 706 authority (see 1707210040).
FirstNet updated the FCC with a list of public safety systems operating in band 14, the band FirstNet will use to build its network. Three of the public safety licensees on the list -- Kalamazoo County, Michigan; Monroe County, Michigan; and the Tennessee Department of Corrections -- were eligible for federal grants to move their systems out of the band but chose not to apply, FirstNet said. In August, the network awarded grants of as much as $14 million to help public safety systems relocate (see 1608180057). FirstNet awarded $14 million to the Illinois Emergency Management Agency, $7.3 million to Virginia State Police, $3.8 million to the Arkansas State Police and $1.6 million to the Massachusetts State Police. The Department of Defense, Honolulu County; the Marshall, Michigan, Police Department; Stamford, Connecticut, Fire Department; and Post Falls, Idaho, Police Department each got less than $45,000. FirstNet filed a report in docket 12-94.
Comcast's $3.8 billion takeover of DreamWorks Animation is complete, with DreamWorks now part of Comcast's Universal Filmed Entertainment Group that also includes Universal Pictures, Fandango and NBCUniversal Brand Development, Comcast said in a news release Tuesday. NBCUniversal CEO Stephen Burke has said the deal moves forward NBCU's TV animation plans and will help create consumer products and theme park properties (see 1606130022).
FirstNet will have stability at the top as it nears a key development: selection of a group of companies that will help build the network. The Department of Commerce said Thursday that Sue Swenson, FirstNet chairwoman, was reappointed to the board and will continue as chair. Jeff Johnson also was reappointed and will continue as vice chairman. Meanwhile, FirstNet took care of additional business Thursday, awarding grants to public safety systems that will have to move from the spectrum FirstNet will use to build its network.
AT&T Q2 lobbying is staying about as strong as in last year’s, $4.07 million in the disclosure report due Wednesday and $4.1 million the year before. The quarterly spending is far above many entities in the telecom and media sectors (see 1607200077). Comcast, another big spender, reported $3.38 million, down from $3.8 million. USTelecom spending didn’t shift greatly, $1.05 million vs. $1.18 million. Dish Network lobbying spending rose by $30,000 to $470,000. CenturyLink spending dropped greatly, down to $410,000 from $980,000.
The FTC signed off on Comcast's acquisition of DreamWorks Animation, the agency said in an early termination notice Monday. Comcast has said it expects to conclude the $3.8 billion deal by year's end (see 1604280010).
Comcast will spend roughly $3.8 billion on DreamWorks Animation in an all-cash deal, making it part of its Universal Filmed Entertainment Group, the cable company said in a news release Thursday. Comcast said it expects to close on the deal by year's end, subject to antitrust approvals in the U.S. and internationally. On close, DreamWorks Animation CEO/co-founder Jeffrey Katzenberg will be chairman of DreamWorks New Media, which will hold its ownership interest in Awesomeness TV and Nova, and serve as an NBCUniversal consultant, Comcast said.