Rethink proposed rules for secure telecom gear in U.S. networks (see 2106180039), Huawei said in reply comments posted Tuesday in docket 21-232. “While Huawei shares the Commission’s stated interest in ensuring secure and reliable communications networks, the record demonstrates that the proposed rules would be an unlawful and irrational way to address purposed risks associated with RF equipment,” the company said: “Proposed rules are fundamentally flawed in seeking to preclude and revoke RF equipment authorizations of selected companies without considering whether the equipment poses any interference or security risk.” The rules are also “overly burdensome and costly, would be ineffective at best, and violate obligations of World Trade Organization members and fundamental principles of the General Agreement on Tariffs and Trade,” Huawei said.
The Bureau of Industry and Security plans a virtual forum 9 a.m. EDT Oct. 29 to gather recommendations on bolstering the resiliency of “critical supply chains” for the U.S. information and communications technology industry “that are at risk of disruption, strain, compromise, or elimination,” says Tuesday’s Federal Register. Requests to give oral statements at the forum are due Friday. Submissions to listen in are due Oct. 27. Information collected at the forum will help the Commerce and Homeland Security departments prepare their report to the White House by the one-year anniversary of President Joe Biden’s Feb. 24 executive order on curing ICT supply chain disruptions. BIS also seeks comment by Nov. 4 on building more resiliency into ICT supply chains (see 2109170042).
Global smartphone shipments dropped 6% in Q3 as vendors struggled to meet demand amid a “chipset famine,” Canalys reported Friday. The smartphone industry is straining to maximize device production, while chipmakers bump prices to “disincentivize over-ordering," in an attempt to close the gap between demand and supply, said analyst Ben Stanton, saying shortages won’t ease until “well into 2022.” High global freight costs hiked device pricing at retail, Stanton said. Verizon dropped its $1,000 iPhone offer Thursday, scaling it back to a maximum $500 off, and AT&T’s website Friday showed the $1,000 deal expiring Oct. 14. New Street Research's Jonathan Chaplin wrote that the end of the $1,000 offers put the brakes on a “wireless industry selloff” around subsidies offered with the iPhone 13 launch. The moves may improve T-Mobile’s ability to take share in Q4, said the analyst: The carrier was offering up to $1,000 “on us” Friday via 30 monthly bill credits for customers choosing the Magenta Max plan and trading in an eligible device.
EU governments generally back the European Commission's proposed AI act, said EU Council telecom officials Thursday after a virtual debate on the legislation. Everyone agreed there must be a systematic, unified approach to AI in the single market based on fundamental rights, said Bostjan Koritnik, public administration minister for Slovenia, which holds the current EU presidency. Officials want a horizontal regulatory framework that covers use of AI in all sectors. The vast majority of ministers support the EC's risk-based approach but said many issues need further discussion, such as the scope of the measure, law enforcement aspects and definitions of key terms, the Council said. The debate raised two key questions, said EC Internal Market Commissioner Thierry Breton: The need for a unified approach that generates trust and the necessity of balancing innovation against citizens' confidence in using AI. EU rules will also have to apply to AI producers outside the EU, he said. Rules must be proportionate, limited to what's necessary, adaptable to emerging risks and respectful of values, and must stimulate investment, he said. Governments must ensure access to the data on which AI depends, Breton added. Discussions will continue in the Council's telecom working party, with a compromise proposal expected in November.
The Commerce Department's Bureau of Industry and Security fined a U.S.-based telecom company $1.87 million for illegally exporting goods to Vietnam, BIS said in a Tuesday order. California-based VTA Telecom, a subsidiary of a Vietnamese state-owned telecom company, allegedly included false statements in its export applications to conceal defense end uses for the exports, BIS said. It said it will suspend about $200,000 of the penalty if VTA completes a two-year probationary period outlined in a settlement agreement with BIS, or if it dissolves its business. VTA agreed to spend $25,000 to improve its “ongoing” export compliance efforts and hire a trade compliance director for two years. If VTA doesn’t pay the fine or violates the agreement, BIS may deny the company export privileges. VTA Telecom couldn’t be reached for comment.
The “sophistication and safety” of Huawei’s 5G products “have been recognized by most operators around the globe,” said a Chinese Foreign Affairs Ministry spokesperson Tuesday when asked about a Nanos Research poll for the Globe and Mail that found 76% of Canadians support banning Huawei from participating in Canada’s 5G network buildout, following the lead of the U.S. and Australia. A similar Nanos poll in 2019 found 53% supporting a Huawei ban. Prime Minister Justin Trudeau hasn’t ruled out including Huawei in Canada’s 5G buildout and is expected to announce his decision soon. “The Canadian side should adopt an objective and unbiased attitude, independently make decisions that are in line with its interests, and provide a fair, just, open and non-discriminatory business environment for Chinese companies,” said the spokesperson.
A European Parliament vote opposing mass AI surveillance by police got cheers from civil society, jeers from the tech sector. Wednesday's nonbinding resolution backed a ban on private facial recognition databases, behavioral predictive policing and citizen scoring, and said automated recognition shouldn't be used in public places. Lawmakers worried AI surveillance could discriminate against various groups, especially in the context of law enforcement and courts, and said citizens should be monitored only when suspected of a crime. They said humans should supervise AI systems, algorithms should be open, and people subject to AI surveillance must have remedies. The report took "what many have seen as the most progressive steps of the Parliament so far in the AI debates -- and perhaps some of the most progressive in global AI policy," blogged European Digital Rights Wednesday. The Information Technology and Innovation Foundation, however, warned the ban on facial recognition would "undermine efforts to effectively respond to crime and terrorism in Europe." It urged the EU to focus on developing safeguards for appropriate use of the technology and effective enforcement of privacy laws.
The FCC released best practices for the disposal of Huawei and ZTE gear removed as part of the rip and replace program, in a notice listed in Friday’s Daily Digest. These include "procedures to effectuate equipment removal, data destruction, media sanitization, storage, transportation, physical destruction and recycling, and also cover the selection of certified data sanitization services, equipment destruction services, and electronic waste (e-waste) recycling services,” the Wireline Bureau public notice said: While voluntary, these practices will help companies meet their disposal obligations efficiently, while also ensuring the safe and secure removal and disposal of covered communications equipment and services that pose a national security threat.” Carriers “can employ alternative compliance measures, but risk the Commission subsequently finding that such measures are not in compliance with section 1.50004(j) of its rules,” the PN said. The Rural Wireless Association raised concerns some of its members are already in the process of disposing of gear, staff said. The FCC will keep in mind these providers “could not have known the best practices” in the PN and will “take this into account when evaluating compliance,” the bureau said. Choice of vendor is optional, but the notice recommends using a “U.S. disposal company” registered with the State Department’s Directorate of Defense Trade Controls.
The International Bureau sought comment on Thursday by Oct. 14 on draft recommendations approved this week by the FCC 2023 World Radiocommunication Conference Advisory Committee (see 2109280063), in docket 16-185.
China slammed the FCC Wednesday for moving on the rip-and-replace program for Chinese gear (see 2109270023). “Considering the grave pandemic and economic situations in the U.S., the $1.9 billion could be used better in areas in urgent need,” said a Foreign Affairs Ministry spokesperson. “The U.S. has kept smearing and slandering Huawei and other Chinese companies, but is unable to present any solid evidence to support its accusations. The so-called ‘national security’ is only a clumsy excuse of the U.S. to impose ‘national bullying’ and practice trade protectionism.”