The ICT Marketplace and

Key Policy Activities

KGPCo Pinnacle 2018

ICT Market Trends

SOURCES:

TIA, ITIF, WEF,

Cisco,

CompassIntel, 5G

Americas, Ovum

Data Traffic Growth (Cisco VNI)

• More than 75% of global mobile data traffic will be video by 2021

• Starting in 2019, more IoT devices will be added to mobile networks than phones/tablets/PCs combined

• North American data center traffic will reach 8.0 zettabytes per year by 2021 (23% CAGR)– 8 ZB = 8,000 EB = 8,000,000 PB = 8,000,000,000 TB

• Traffic delivered by content delivery networks (CDNs) will increase from 52% to 71% globally from 2016-2021

Software-Defined Networking Adoption

TIA represents

manufacturers

and suppliers of

global

communications

networks through

standards

development,

policy &

advocacy,

business

opportunities,

market

intelligence and

networking

events.

The United States ICT Industry

• 800,000 direct U.S.jobs

• 5.7 million people directly and indirectly employed

• Communications industry alone is 3.3% of total U.S. GDP

• Total spend on ICT products & services was $1.53 trillion (2016)

– U.S. is about 20% of the global market

ICT Policy Activity in Washington,

2017-18

High-Level Accomplishments 2017-18

• Corporate tax reform– Continuation of significant economic growth

– Significant stock market increase in 2017

• RAY BAUM’s Act (March 2018)– First FCC re-authorization in 25 years

– Includes MOBILE NOW Act to promote wireless broadband

• FY18 Spending Bill (March 2018)– $600 million for new Rural Utilities Service broadband pilot

• Appointing FCC Chairman Ajit Pai

Some Key FCC Accomplishments 2017-18

• Restoring Internet Freedom– Reverses Net Neutrality / Title II rules

– Efforts in Congress to reach a compromise

• Infrastructure deployment– Pole replacement / make-ready

– IP Transition

– Simplifying small cell deployments

• Making more spectrum available

• Equipment authorization: e-Labeling etc.

Areas of Current Concern

• Trade Policy– Trans-Pacific Partnership (including digital trade provisions)– NAFTA under review– Tariff battle with China including high-tech products

• Cybersecurity Policy– ZTE ban due to export control violations– Cyberespionage concerns: Huawei, ZTE, Kaspersky

• Budget Deficits– Deficits nearly as large as Great Recession, but in good times– U.S. debt-to-GDP at highest levels since World War II

Policy Spotlight:

Broadband Infrastructure

Deployment

Consolidated Appropriations Act, 2018

• $600 million for new RUS broadband program

– “Downpayment” on President’s infrastructure initiative

– 90% of households must be in a rural area without sufficient access to broadband

– Below 10 Mbps down / 1 Mbps up

– No overbuilding or duplication w/ other RUS projects

• $7.5 million to update National Broadband Map

• $100 million for highly automated vehicle R&D

RAY BAUM’s Act

• Post-disaster recovery (§ 302)

– ICT companies are now “essential service providers”

• USF mobile service coverage area (§ 505)

– FCC must establish methodology within 180 days after completion of Mobility Fund Phase II auction

• FCC reports to be produced

– Veterans’ access to broadband (§ 504)

– Tribal digital access (§ 508)

Regulatory Obstacles: Federal Siting

• Lengthy times for deployment on Federal lands & properties– Years to permit, hours to install

• Forest lands, post offices, federal buildings, etc.

• Goal: development of common application form for use across agencies

• Goal: single agency POC for application tracking

• Several bills introduced in Congress

MOBILE NOW Act (Title VI of RAY BAUM’s Act)

• Deployments on federal property (§ 606)

– Requires timely action on wireless siting applications

• State DoT coordination requirements (§ 607)

– Each state must designate a broadband ROW coordinator

– Each state must coordinate with interested BBand entities

– Encourages dig-once policies

• GSA database of federal property (§ 608)

– GSA must track ability to deploy broadband infrastructure

FCC Wireline Infrastructure Order (Nov. 2017)

• Access to utility poles and conduits– Prohibit charging “make-ready” fees already recovered

– 180-day shot clock for FCC Enforcement Bureau action on pole attachment disputes

– Allow local providers equal access to each others’ poles

• Copper retirement and IP transition– Streamlining customer notification requirements

– Speed timeframe for upgrading copper to fiber

– Expedite certain carrier applications on discontinuance

– Eliminate Sec. 214(a) rules for solely wholesale services

FCC Wireless Infrastructure Order (Mar. 2018)

• Eliminated NHPA review for replacement poles (11/17)

• Eliminated NHPA and NEPA review for small cells– Greater of 50 feet or 10% greater than surrounding structure

– Three cubic feet volume

• Streamlined Sec. 106 tribal review process

– Sprint paid $173,305 for 23 cell sites before Super Bowl LI

• Eliminated floodplain EA review if 1 foot above baseline

• 60-day timeline for FCC EA review and FONSI issuance

Regulatory Obstacles: State & Local Siting

• Moratoria

• Zoning Rules and Arbitrary Conditions

• Differential Treatment of New Entrants

• Delays

• Exorbitant Site Inspection and Application Fees

• Unsustainable Annual Rents

FCC Review of State & Local Siting

• Broadband Deployment Advisory Committee (BDAC)– Developing a model code for state & local gov’ts

• Wireless deployment proceeding: open issues– Shot clocks for state / local permitting review

– “Deemed granted” remedy if no action by locality

– Reasonable rate requirements tied to cost recovery

– Prohibition on local moratoria

• FCC action expected in next few months– Very controversial, murky legal authority, lawsuits likely

Policy Priority:

5G and Spectrum

The Global Race to 5G

• High bandwidth, low latency, IoT & transformative apps

• 3GPP approved first 5G standard (late 2017)

• Testing has been underway for some time– Example: Verizon, Korea Telecom, Samsung, and Intel tested 5G

at the Super Bowl and 2018 Winter Olympics in Pyeongchang

• AT&T plans to deploy 5G in the U.S. by end of 2018– First devices will be “pucks,” not phones

• EU is also moving forward

• FCC is trying to promote U.S. leadership (spectrum etc.)

Spectrum Needs for 5G

• Low-Band -- sub-1 GHz

– Longest-distance propagation

– Widely in use today

• Mid-Band – 3 to 6 GHz

– Intermediate propagation, higher bandwidth

• High-Band – 24 GHz+ (millimeter-wave)

– Ultra-high bandwidth, ultra-low latency applications

– Short distances (blocks), small cells

Low Band Spectrum: The TV Incentive Auction

• Repurpose OTA TV channels for mobile wireless

• Cleared 84 MHz in 600 MHz band (channels 38-51)– 70 MHz for licensed, 14 MHz for unlicensed

• Auction closed March 30, 2017– $19.8 billion in revenue

– $10B for broadcasters going off the air, $7B for Treasury

• Post-auction transition is underway– T-Mobile (biggest bidder) has already launched services

– March 2018: $1B to finish broadcaster relocation costs

Mid-Band Spectrum

• Citizen’s Broadband Radio Service: 3.5 GHz– Small cells & spectrum sharing, 3-tier structure: Fed, PAL, GAA

– FCC rules review in progress, expected to conclude soon

• Mid-Band Notice of Inquiry (2017)– C-Band satellite downlink spectrum: 3.7-4.2 GHz

– 6 GHz Band: 5.925-6.425 + 6.425-7.125 GHz bands

• Recent Developments– 2.5 GHz (May 2018)

– 3.4 GHz (NTIA reviewing)

High-Band Spectrum

• Spectrum Frontiers (above 24 GHz)

– 2016 Order opened 28, 37, 39 GHz bands

– 7 GHz for unlicensed at 61-71 GHz

– 2017 Order opened 24 GHz and 47 GHz bands

– First auctions expected Fall 2018

• Spectrum Horizons (above 95 GHz)

– New FCC proceeding in 2018

– Currently open for comments

Federal Spectrum Transitions & Sharing

• Federal government still controls most spectrum

• Many of the potentially easier transitions have already been accomplished

• Industry and government must continue working together

• Challenge: identifying and implementing meaningful incentives for agencies to use spectrum efficiently

• Increasing openness to sharing w/ new technologies

MOBILE NOW Act (March 2018)

• Gov’t to identify 255 MHz (below 8 GHz) by 2022– 100 MHz licensed, 100 MHz unlicensed, 55 MHz either or

combination

• Evaluation of 3100-3550 and 3700-4200 MHz bands

• Study reallocation incentives for federal agencies

• Study bidirectional sharing (carrier to gov’t)

• Streamlining the Spectrum Relocation Fund

• Creation of national plan for unlicensed spectrum

Policy Priority:

National Security and Supply Chain

Issues

Huawei, ZTE, and Kaspersky Labs

• Cyberespionage threats from China & Russia– House Intelligence Committee report, 2012– DHS order on Kaspersky Labs, 2017– AT&T & Verizon drop plans to sell Huawei gear, Jan. 2018

• The Past Week– DHS/FBI/UK alert on Russian hacking, 4/16– ZTE receives 7-year ban for export violations, 4/16– FCC proposes to ban USF spending on H,Z,K gear, 4/17– U.S. China Economic & Security Comm. supply chain rep., 4/19

• Bills in Congress to ban H,Z use in all federal systems

The Rest of TIA

Other TIA Policy Activities

• Device Approval– E-labeling, testing, etc.

• Cybersecurity– NIST Framework, CSCC, ITSCC, NTIA activities

• Internet of Things– Smart Cities, Smart Buildings, Intelligent Transportation

• Public Safety– FirstNet, NG911, location accuracy, resiliency

Global Market Access

• Digital Trade– Global supply chains, cross-border data flows

• Non-discriminatory government procurement

• India– WTO-inconsistent ICT duties

• China– Trade concerns, non-tariff barriers, the past 3 weeks

• NAFTA

Non-Policy Work

• Standards development

– Data centers, towers, historic standards, new stuff

• Smart communities

– Smart cities initiatives

• Events

• TIA-QuEST Forum Merger (Sep. 2017)

– TL 9000 certification etc.

Contact Info

Dileep Srihari

Senior Policy Counsel and Director, Government Affairs

dsrihari@tiaonline.org

(703)-907-7715

Questions