GOP Unveils $928 Billion Infrastructure Counter-Offer

By Leslie Stimson, Inside Towers, Washington Bureau Chief UPDATE Senate Republicans on Thursday took the wraps off their $928 billion infrastructure counteroffer to President Joe Biden, as talks progressed to see whether both sides can reach a deal. GOP Sen. Shelley Moore Capito of West Virginia has led the Republican negotiations. She said she was “optimistic” about infrastructure talks with Biden but still sees a “big gap” between Republican and White House plans, according to CNBC.
 
The plan still includes $65 billion for broadband. Inside Towers reported last week the latest White House offer, whittled from around $3 trillion to $1.7 trillion, also included $65 billion for broadband.
 
Republicans and the White House have moved closer to agreement on an infrastructure plan but still need to resolve fundamental issues about the scope of a package and how to pay for it, Capito said Thursday. She said the sides are “inching closer” in negotiations ahead of Memorial Day. That’s the date by which the White House wanted to see progress in bipartisan talks. Continue Reading

China Thinks Deep With Data Centers Under The Sea

 China is experimenting with constructing an undersea data center, attempting to cut cooling costs significantly. According to Reuters, the design has been finalized and a location selected off the coast of Hainan province. 

The project is a collaboration between the local Hainan government, maritime tech company Highlander, and ISP Beijing Sinnet. The underwater data center will be much smaller than those on land, housing 100 data cabinets with approximately 4,200 servers, compared to the usual 50,000 - 80,000 servers. It is unclear how the project is being funded, reported Reuters. Continue Reading

Race For Infrastructure Stalls Before Memorial Day

 Lawmakers are heading toward the congressional Memorial Day break with little sign of progress in negotiations over a massive infrastructure package. The White House offered a counterproposal on Friday, but Republicans quickly rejected the offer. Shelley Moore Capito, the ranking member of the Senate Environment and Public Works Committee, said the two sides “seem further apart after two meetings with White House staff than they were after one meeting” with President Joe Biden.  

The $1.7 trillion White House proposal reduced spending to the levels suggested by Republicans. Broadband funding was cut to $65 billion from the original $100 billion, matching the GOP offer, Inside Towers reported yesterday. “We believe we can still achieve universal access to affordable high-speed internet at your lower funding level, though it will take longer,” the White House said in a memo. Continue Reading

FCC Fines Air-Tel and IOU Acquisitions for Spectrum Misuse

 By Leslie Stimson, Inside Towers Washington Bureau Chief The FCC voted Thursday to fine Air-Tel, LLC and IOU Acquisitions, Inc. a total of more than half a million dollars for providing wireless broadband-based GPS vehicle tracking services they were not licensed for.  

Air-Tel and IOU hold authorizations to provide Radiolocation Services in the 3300-3650 MHz band. These services are generally radar-based and rely on the propagation properties of these frequencies to determine the position of an object for non-navigation purposes. Instead, the Commission said, the companies offered different wireless broadband-based GPS services that rely on satellite communications and wireless broadband, not radiolocation.

“It does not get much air-time, but one of the most important parts of this agency’s work on spectrum policy is enforcement,” said FCC Acting Chairwoman Jessica Rosenworcel during the vote. “The most dynamic, innovative and data-driven spectrum policy does not amount to much if [licensees] do not comply with our rules.” Continue Reading

Frontier Communications Back in the Hot Seat Again

 UPDATE Already facing challenges from numerous states that claim Frontier has failed to deliver on its connectivity promises, the company is now being sued by the Federal Trade Commission, according to ET Telecom. Plaintiffs include Arizona, California, Indiana, Michigan, North Carolina, and Wisconsin. The complaint was filed in the U.S. District Court for the Central District of California.
 
A spokesperson for Frontier said that the suit is "without merit.” Frontier has faced similar claims that it both misrepresented its internet speeds and fell short of service delivery expectations. Settlements were reached with Minnesota, Nevada, New York, Pennsylvania, Washington and West Virginia, though Frontier has denied that it did anything wrong, according to the account.
 
So far, states confronting Frontier have been awarded millions of dollars in settlements. The latest legal challenge accuses Frontier of underperforming, particularly on its DSL network, which customers say does not come close to providing the speed and service they were led to expect.

NTIA Offers Millions in Broadband Infrastructure Grants

 The U.S. Department of Commerce’s National Telecommunications and Information Administration (NTIA) on Wednesday made available nearly $300 million in grant funding for the deployment of broadband infrastructure. Grants will be awarded to partnerships between a state, or political subdivisions of a state, and providers of fixed broadband service.

NTIA’s Broadband Infrastructure Program was established by the Consolidated Appropriations Act, 2021, which defined the priority order.  

NTIA will accept applications for projects that are designed to: Continue Reading

Administration Sees Jobs Plan as Cybersecurity Outlay

 The White House this week is promoting the concept of universal broadband that’s part of the American Jobs Plan infrastructure package as a large investment in cybersecurity.

The White House issued a fact sheet Tuesday to help President Joe Biden round up support on Capitol Hill and consumers for the legislative measures. The Job Plan’s $100 billion funding of “affordable, reliable, high-speed broadband” will also be an historic investment in network security when combined with Biden’s executive order on cybersecurity, the White House said, according to Multichannel News.

Grant recipients "will be asked to source from 'trusted vendors,'" while preference for the grants will be given to "open, interoperable architecture," at least "where feasible," the administration says in the document. Tech companies praise the goal of securing digital infrastructure. Continue Reading

AT&T Plans for Standalone Media Group to Shift Focus to Telecom

 AT&T Inc. (NYSE:T) and Discovery, Inc. (NASDAQ: DISCA, DISCB, DISCK) Monday announced a definitive agreement to combine WarnerMedia's premium entertainment, sports and news assets with Discovery's nonfiction and international entertainment and sports businesses to create a standalone global entertainment company.

Under the terms of the agreement, which is structured as an all-stock, Reverse Morris Trust transaction, AT&T would receive $43 billion (subject to adjustment) in a combination of cash, debt securities, and WarnerMedia's retention of certain debt. AT&T's shareholders would receive stock representing 71 percent of the new company; Discovery shareholders would own 29 percent of the new entity. The Boards of Directors of both AT&T and Discovery have approved the transaction. 

John Stankey, AT&T CEO said, "For AT&T shareholders, this is an opportunity to unlock value and be one of the best capitalized broadband companies, focused on investing in 5G and ready to meet substantial, long-term demand for connectivity." Continue Reading

Michigan Governor Vetoes Second Broadband Accessibility Bill

Last Thursday, Michigan’s Gov. Gretchen Whitmer vetoed a bill proposing a tax exemption for broadband internet equipment for qualified businesses. MLive reported this is the second measure related to broadband that Whitmer has denied; last month, she vetoed legislation, saying that internet speed requirements were too low, and the cost was too high.

Senate President Pro Tempore Aric Nesbett sponsored the denied Senate Bill 46. He said of the veto, “Unfortunately, Governor Whitmer again vetoed legislation to expand high-speed internet access. We accommodated her request for faster speeds, but now there are new excuses while hundreds of thousands of Michiganders still lack adequate service.” Continue Reading

OSHA Set to Release New COVID Standards

 As early as today or next week, the Occupational Safety and Health Administration (OSHA) is expected to release a new COVID standard for the workplace. That’s according to Mark Lies II, a labor and employment attorney and partner with the Seyfarth Shaw LLP law firm.

He spoke during a webinar from NATE: The Communications Infrastructure Contractors Association and Seyfarth Shaw on Thursday titled: “What to Expect from OSHA in 2021 and Beyond.” OSHA has previously issued guidance for masks, social distancing and sanitation during the pandemic, according to Lies. Some states — including California, Oregon, Michigan, Washington and Virginia — already have COVID workplace guidance in place, he notes. However, a national, temporary standard would be new. He advised companies to review OSHA’s website to review the new standard when it comes out. Continue Reading

Six Hundred Australian Telecom Technicians Walk Off the Job

 Roughly 600 telecommunications technicians announced yesterday they have called a halt to working on Australia's National Broadband Network (NBN) 5G rollout plans for the country. Workers say they are dealing with difficult and demanding situations while not being adequately compensated, according to ITWire.com. They claim the company is only rewarding top level executives who received US$60 million in bonuses in 2020, while the front-line workers struggled through the pandemic. 
 
“Australians will not receive NBN installations or repairs today [Wednesday] as local NBN technicians join colleagues around Australia, walking off the job as part of a National Day of Action,” the Communications Union (CEPU) said in a statement on Wednesday. Continue Reading

Enrollment in Emergency Broadband Benefit Program Opens

 By Leslie Stimson, Inside Towers Washington Bureau Chief Today marks the first day consumers can sign up for the Emergency Broadband Benefit (EBB) program, a $3.2 billion subsidy program to help low-income households struggling with monthly broadband bills. Inside Towers reported yesterday that the FCC on Monday passed final rules to implement the EBB. On Tuesday, the FCC released an Order to implement the separate $7.17 billion Emergency Connectivity Fund Program that will provide devices and connectivity to schools and libraries for remote learning during the pandemic.

“This is a really big deal,” FCC Acting Chairwoman Jessica Rosenworcel told reporters yesterday. She called both programs “the largest single effort” undertaken in the U.S. to help close the homework gap. 

Sen. Ed Markey (D-MA), instrumental in getting the program funding passed in the Senate, said: “No student should have to sit in a strip mall to do their homework. The pandemic made the digital divide even worse.” He said many schools are opening with hybrid models, so students’ need for connectivity at home “is not going away.” Continue Reading

Three Chinese Telecoms to be Delisted from NYSE

 UPDATE Shares of three major Chinese telecom carriers will be delisted from the New York Stock Exchange after their appeals against being dropped were rejected, reports Markets Insider.
 
China Mobile, China Unicom (Hong Kong), and China Telecom said they all expected the NYSE to request permission from the Securities and Exchange Commission to delist their American depositary receipts, according to the account. The SEC said the delisting will take effect in ten days, according to the account.  
 
In response, China Mobile stated it will continue to pay close attention to the development of “related matters and seek professional advice to protect the lawful rights of the company and its shareholders.” Continue Reading

FCC Expands 3.5 GHz Access to U.S. Territories

 The FCC has made mid-band spectrum in the 3.5 GHz band (3550-3700 MHz) available for 5G and other advanced wireless services to an array of operators. Now, the agency has taken actions to enable commercial deployments in the band in Puerto Rico, Guam, and American Samoa for the first time.

“No matter who you are or where you live, you need access to modern communications to have a fair shot at 21st century success. This is true, of course, for those living in Puerto Rico, Guam, and American Samoa too,” said FCC Acting Chairwoman Jessica Rosenworcel. “These actions continue our efforts to bring 5G to everyone, everywhere in the country — and not create communities of 5G haves and have-nots.” She thanked the National Telecommunications and Information (NTIA) and the Department of Defense for working closely with the FCC on the effort. Continue Reading

CCA Fears “Hundreds of Millions” in RDOF Funds to be Misspent

 The Competitive Carriers Association (CCA) says in a new study shared with the FCC that errors in broadband data will soon send hundreds of millions of dollars of federal broadband subsidies to areas of the country least in need of support. Because of that, CCA asked the Commission to reconsider awarding Rural Digital Opportunity Fund (RDOF) Phase I grants to wealthy, densely populated areas with broadband access, and instead direct support to genuinely unserved communities. 

Last year, the FCC’s RDOF used a reverse auction to try to direct billions of dollars of federal subsidies to areas without access to at least 25/3 Mbps in broadband services. The premise of RDOF Phase I was to target areas that the Commission “knew with certainty” were “currently unserved.” The agency used the broadband location maps it had at the time. It has since begun updating the data collection for the maps, Inside Towers reported. Continue Reading

T-Mobile Keeps the Pedal to the Metal

 Year-over-year comparisons can be misleading. 1Q20 results were reported prior to the Sprint merger closure. Continue Reading

By John Celentano, Inside Towers Business Editor

T-Mobile (NASDAQ: TMUS) is not slowing down. With positive 1Q21 results, the company is “confident” about its performance for 2021 and over the next several years, as it continues its 5G network build and completes integration of the Sprint network. Total 1Q21 postpaid and prepaid customers grew to 103.4 million compared to 102.1 million at year-end 2020. Service revenues for 1Q21 were $14.2 billion, essentially flat with $14.2 billion in 4Q20 and up 60 percent from $8.8 billion in 1Q20. TMUS’ capital expenditures for the quarter were $3.2 billion compared to $3.8 billion in 4Q20 and $1.8 billion in 1Q20.

NATE Declares Today “Tower Technician Appreciation Day”

 NATE: the Communications Infrastructure Contractors Association, unveiled a commemoration declaring today as “Tower Technician Appreciation Day.” For the fifth consecutive year, a day has been set aside by NATE and the industry in order to pay tribute to the important work that communications infrastructure technicians conduct on a daily basis to enable a connected world. The association encourages member companies and industry stakeholders to use this as a day of commemoration to host events within their respective organizations to pay tribute to the technicians they employ. The trade organization also encourages companies to incorporate #TowerTechAppreciationDay into social media posts throughout the day.

Jimmy Miller, Chairman of NATE, said over the last 14 months alone, tower technicians have demonstrated their essential roles to the country’s economy by deploying the 5G and broadband infrastructure and related networks while simultaneously navigating a global pandemic. 

“These men and women are true heroes and the MVP’s of the industry in my book,” Miller said. Continue Reading

What a Difference MNO Deals Make for Towercos!

The Big 3 tower companies – American Tower (NYSE: AMT), Crown Castle (NYSE: CCI) and SBA Communications (NASDAQ: SBAC) – are all flying high with new deals with the U.S. national mobile network operators (MNOs).

The Big 3 towercos provide the critical infrastructure backbone for the three established national MNOs – AT&T (NYSE: T), T-Mobile (NASDAQ: TMUS) and Verizon (NYSE: VZ) along with planned DISH Network (NASDAQ: DISH) installations.

The Big 3 operate on a scale of their own. At the end of 1Q21, the Big 3 collectively owned and operated 100,000 towers in the U.S., roughly two-thirds of the existing communications macro towers in the country that support all wireless carriers’ more than 350,000 cell sites.  

From a portfolio perspective, the Big 3 are quite different. AMT’s global tower tally at end of 1Q21 was 183,860 with nearly 43,000 towers in the domestic market. CCI is a pure-play U.S. operator with 40,086 macro towers. SBAC’s 1Q21 report showed 17,259 U.S. towers out of its global tally of 33,711. Continue Reading

Utility Pole Oversight Bill Passes Florida Legislature

 Florida lawmakers last week passed legislation to give the state oversight over utility poles. The measure is on its way to Gov. Ron DeSantis‘ desk for his signature.
 
The House voted 114-3 on Wednesday to pass the bill to shift utility pole oversight from the FCC to the Florida Public Service Commission. The measure passed the state Senate on Monday 38-2, reported Florida Politics.

If the Governor signs the measure, Florida joins 22 other states and the District of Columbia, in regulating pole attachments, according to Communications Daily. 

The bill (SB 1944) requires the PSC to enforce rates, charges, terms and conditions for pole attachments and to resolve disputes. It outlines new rules for settling disputes, boosting grid reliability and hardening, and on redundant poles. Continue Reading