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Reverse Auctions Discussed

Carr, Clyburn Cite FCC Progress Under 2-2 Commission Split

ASPEN, Colorado -- The FCC is “far from gridlock,” despite the commission’s 2-2 split, but the agency could do more to reach “bipartisan, low-hanging fruit,” Commissioner Brendan Carr told us Tuesday before speaking on a Technology Policy Institute panel. “If you had asked me in January or February, do you think you’ll be in August without the White House naming a chair, I would have said no,” he said. “That said, hats off to the chair.”

Carr cited progress on the $3.2 billion emergency broadband benefit program, the $7.17 billion Emergency Connectivity Fund (see 2106290050) and the 3.45 GHz auction (see 2107280050). The agency is getting “a lot done,” he said, but it could be doing more on the spectrum front. The FCC “unleashed a spectrum tsunami” under former Chairman Ajit Pai, Carr said, and “we continue to ride that wave.” But there comes a point where the agency needs to “start standing up additional spectrum bands beyond the one that Pai put in the pipeline,” he said.

The incentive now is for commissioners to drive to the middle politically, which can’t be said about the rest of Washington, he said during a panel discussion with former acting Chair Mignon Clyburn. “I don’t mean to sound cosmic, but I don’t believe in accidents,” said Clyburn. “I believe that we’re at this moment and we’re at 2-2 for a reason to show by example what can be done.” She gave “an A+” to the commission for its progress in the “moment.”

Tools for antitrust enforcers also need attention, said Carr. Antitrust laws were developed long before this new phenomenon in which companies rapidly consolidate power. The gap between corporate power and accountability has never been larger, he said.

Clyburn was asked if she’s a “fan” of reverse auctions. “Whatever you saw me vote on during my FCC years, I support,” she said. Carr was asked about attendees’ enthusiasm for reverse auctions and the commission's capability to make reverse auction technology available to states if a bipartisan bill passes and states distribute the money. “I don’t know,” said Carr. There needs to be agreement that federal agencies and states “with their own money are going to drive through the map. It’s got to be first and foremost. And then it would be great to get the efficiencies that come from reverse auctions out as well. We’ve got the money to close the digital divide multiple times over. Shame on us if three, four, five years down the road, the $800 billion is gone, the $60 billion is voted on, that’s gone, and we’re still at a persistent digital divide.”

Carr and Clyburn were asked if the government is doing enough to meet Chinese threats. The FCC can strengthen its China approach across multiple fronts, said Carr: “We need a top to bottom of every entity that’s ultimately owned or controlled by the communist regime that has a [Section] 214 or authorization to do service here. We should examine that. We should start to proceed to revoke them where we identify national security threats. The process is now underway. I’m glad about that.”

Clyburn cited Chinese plans to build “extensive fiber bills and other gigabit infrastructure” by 2025. She noted the Chinese are teaching AI principles and other complementary courses in kindergarten: “If we’re going to keep pace, we’ve got to acknowledge what enables 5G and small cells because it is a matter of international security.” The U.S. can’t afford to fall short “when it comes to 5G and AI deployment,” she said.

Building international coalitions against Chinese threats makes it harder for China to “brush” things away, Xiaomeng Lu, Eurasia Group's geo-technology practice senior analyst, said on a separate panel. Recently the U.S. and NATO allies jointly issued a list cyber intrusions attributed to the Chinese, she noted: “This type of coordination is a good sign. We didn’t see this type of alignment during the Trump administration. ... There’s some hope the new coalition will deliver some pressure on China.”