Rep. Suzan DelBene, D-Wash., is worried the participation of “so many countries” at the World Trade Organization in e-commerce talks -- including China -- will mean the result won't be a high-standard agreement. The House Ways and Means Committee member who also leads on trade in the New Democrat Coalition, DelBene represents a western Washington district that includes Microsoft headquarters. During a Washington International Trade Association interview Wednesday, she agreed tax policy should be rethought, and no longer so focused on physical goods, but said digital services taxes proposed in Europe are discriminatory. She said negotiations at the Organization for Economic Cooperation and Development need to be given time to work. U.S. Trade Representative Robert Lighthizer testifies next week in virtual hearings by the Ways and Means Committee and Senate Finance Committee.
People see fixed wireless as the “most desirable” 5G use, based on a poll by Parks Associates, Nokia said Wednesday. Parks surveyed 3,000 people in the U.K., U.S. and South Korea before the pandemic, finding 76% see fixed the most appealing. The company said 66% claim they would subscribe to 5G fixed access if it “cost the same as their current broadband service and delivers the same or better performance” and 41% say they had the choice of a single provider.
The U.S. should “reaffirm its commitment to voluntary global standards that are open and that facilitate the interoperability of communications and information devices and apps,” CTA asked NTIA as the U.S. prepares for ITU’s 2020 World Telecommunication Standardization Assembly. Others said the U.S. should oppose any push to expand ITU work, in comments posted Tuesday. ITU shouldn’t “duplicate, replace, or interfere with existing efforts, particularly with respect to issues outside the ITU’s core mission,” CTA said. “The consumer technology marketplace is innovative and competitive here and worldwide," the group said: “The current voluntary global standards process reflects this competitive environment by promoting innovation and flexibility while providing for interoperability and security.” Oppose a “new IP” proposal before WTSA, the Telecommunications Industry Association said. Proponents Huawei and the Chinese government say the proposal “promises to provide better support for heterogeneous networks that more efficiently combine satellite and terrestrial signals, deliver better performance, increase security, and support futuristic applications,” TIA said. The proposal duplicates work underway by standards bodies, “poses practical and technical challenges,” and “works against the multi-stakeholder approach to the Internet,” TIA said. “There is a concerning trend with respect to the ITU pursuing standards work outside of its mandate, which duplicates work being done in more appropriate fora,” Computer & Communications Industry Association commented: “Duplication can lead to fragmentation of the Internet and hinder further development of new technologies.” Streamline the number of technical ITU study groups, CCIA advised. ACT|The App Association also warned against more regulation. “While larger corporations may be more equipped to absorb the costs associated with unnecessary regulations and trade barriers to market access, small businesses that cannot afford these expenses are effectively excluded from these markets,” ACT said. Most proposals likely at WTSA aren’t “areas of expertise” and shouldn’t be on the agenda, the Information Technology Industry Council said: “ITI would not support the exploration of new study groups and instead supports the continued consolidation of study groups that are no longer relevant or duplicative.” WTSA-20 is "an opportunity for the U.S. government and our allies to ensure that the ITU does not expand its jurisdiction and remains focused on its existing mandate and core competencies,” the U.S. Chamber of Commerce said. NTIA sought comment in May (see 2005080023). WTSA-20 is scheduled for Hyderabad, India, Nov. 17-27.
5G Automotive Association representatives cited “growing momentum” behind cellular vehicle-to-everything technology, in a call with an aide to FCC Chairman Ajit Pai. “The parties highlighted the ongoing investments in and collaboration on C-V2X Direct by major automotive manufacturers, technology companies, and telecommunications providers,” said a filing posted Tuesday in docket 19-138. Ford, BMW of North America, Fiat Chrysler, Audi of America, Nokia, Qualcomm and Samsung Electronics were among those on the call. Wilkinson Barker’s Sean Conway, a 5GAA outside counsel, said during a Tuesday FCBA webinar the group is “trying to work with” the FCC to ensure a 4G version of C-V2X “can move forward” while also identifying spectrum for 5G use. He was one of several auto industry officials on the webinar who noted their ongoing concerns with the FCC’s 5.9 GHz band plans. The commission is eyeing revised rules that reallocate 45 MHz for Wi-Fi, with 20 reserved for C-V2X and possibly 10 MHz for dedicated short-range communications systems. Conway noted 5GAA wants FCC rules to protect C-V2X in the upper portion of the band. Alliance for Automotive Innovation Safety Director Angel Preston touted the group’s proposal for preserving 5.9 GHz (see 2004290012), saying the FCC’s current NPRM would “hinder” the U.S. globally in advancing auto safety. American Association of State Highway Transportation Officials Program Director-Planning and Policy Matthew Hardy said plans that would preserve only 25 MHz of the 75 MHz of bandwidth wouldn’t allow “enough capacity” to fully realize vehicle-to-vehicle technology’s potential. NCTA Associate General Counsel Danielle Pineres backed the NPRM, saying it strikes a “well-considered balance” that would be an improvement on the current state of operations on the band. FCC Office of Engineering and Technology Policy and Rules Division Special Counsel Howard Griboff gave off-the-record comments during the FCBA webinar.
Q1's churn rate for over-the-top video services was 41%, reported Parks Associates Monday. A March survey of 10,000 U.S. broadband households showed 76% subscribed to an OTT video service, and 62% to a traditional pay-TV service. OTT services filled in the gap created by theater closures during the COVID-19 pandemic by adding new releases and extending free trials, noted analyst Steve Nason: It's unclear whether growth will be sustainable as lockdowns ease, “or if the OTT industry needs to adjust again to new viewing patterns." Of the 41% of households that trialed an OTT service, 69% adopted at least one, Nason said. "New trial offers can be successful in attracting new users, but as competition increases and household budgets shrink, providers will need to explore new service models, such as making a portion of content free or offering discounts to longer-commitment subscriptions.”
Twitter defended its decision to block the Free State Foundation from promoting a net neutrality tweet. “Don't Regulate the Internet as a Public Utility! Public utility regulation would be harmful and counterproductive, suppressing investment and innovation,” the tweet said. Promotion of the tweet was rejected because it was identified as political, a spokesperson wrote us Monday: “Twitter globally prohibits the promotion of political content defined as content that references a candidate, political party, elected or appointed government official, election, referendum, ballot measure, legislation, regulation, directive, or judicial outcome.” Free State Foundation said Twitter “claims to be for Net Neutrality -- but not when a view is expressed contrary to their views on Net Neutrality! Can you believe it was rejected?”
Remote work “will be a much bigger part of the working world,” said Slack CEO Stewart Butterfield on a fiscal Q1 investor call Thursday evening. Business leaders are “beginning to realize” the benefits of “offering a more fluid work environment, blending offices and remote work,” he said. COVID-19's “all-at-once shift” to work-from-home mandates “concentrated multiple quarters of Slack adoption into a few weeks,” he said. Revenue grew 50% from the year-earlier quarter, said Chief Financial Officer Allen Shim. “The transition to work-from-home was obviously a major tailwind this quarter and we expect net new customer additions to moderate through the remainder of the year.” There are “potential headwinds for our business,” the CFO said. Slack draws about 25% of its business from companies with fewer than 100 employees, he said. Within that base, “we saw churn trend a bit higher than historical norms in March and April,” he said. The stock closed 14% lower Friday at $32.56.
Half the readers participating in a poll by technology consultant Shelly Palmer Thursday said it’s “too early to tell” if they will attend CES 2021 “physically or virtually.” Twenty-one percent would go to the Jan. 6-9 Las Vegas and 19% would do so online. Seventy-seven percent back wearing face masks on the show floor. Eighty percent still fear COVID-19 as a health threat, disagreeing with the statement: “I feel safe enough now and do not need to worry about masks or social distancing at a trade show.” CES 2021 is proceeding as planned with masks, social distancing, wider aisles and “options to expand the show digitally" (see 2004210057).
Customs and Border Protection in Detroit seized 4,600-plus remote controlled helicopter drones worth some $69,000 that didn't meet FCC labeling requirements, CBP said Wednesday. The goods, imported from China and subject to tariffs, were also found to be undervalued by about $62,000, CBP said. The imports "were seized June 1 in conjunction with a previous shipment containing more than $400,000 in counterfeit merchandise" that was taken in late May, the agency said.
The Office of the U.S. Trade Representative is starting Trade Act Section 301 investigations into digital services taxes (DSTs) that were adopted or are under consideration, the agency said Tuesday. Investigations focus on Austria, Brazil, the Czech Republic, EU, India, Indonesia, Italy, Spain, Turkey and the U.K. Comments are due July 15. Evidence "suggests the DSTs are expected to target large, U.S.-based tech companies," USTR said. "The European Commission is considering a DST as part of the financing package for its proposed COVID-19 recovery plan." The EU's delegation to the U.S. didn't comment. The "investigation initially will focus on the following concerns with DSTs: discrimination against U.S. companies; retroactivity; and possibly unreasonable tax policy," the USTR said. While the Information Technology Industry Council "hoped to avoid further escalation of tensions, increasingly-expansive unilateral tax measures have necessitated a stronger response,” said CEO Jason Oxman. “ITI continues to support the U.S. government’s efforts to investigate these complex trade issues." Tariffs are a possible result of Section 301 investigations. The agency previously started a Section 301 investigation into France over such taxes and tariffs that were proposed but not implemented (see 1912030002). “An increasing number of countries have proposed or enacted discriminatory and unilateral digital taxes in recent months, despite ongoing [OECD] negotiation," noted Internet Association Director-Trade Policy Jordan Haas. "The U.S. must continue sending a strong message to trading partners that targeted discriminatory taxes against U.S. firms are not an appropriate solution." Instead of "unilateral DSTs, the world needs a multilateral solution," said U.S. Chamber of Commerce Head-International Affairs Myron Brilliant. "The Chamber supports efforts to address these challenges through multilateral negotiations under the aegis of the OECD. We urge all parties to double down on those negotiations.”