The House plans to consider two telecom supply chain bills as soon as Wednesday under suspension of the rules: the Transatlantic Telecommunications Security Act (HR-3344) and Protecting Semiconductor Supply Chain Materials from Authoritarians Act (HR-7372). HR-3344 and Senate companion S-2876 would help Central and Eastern European countries build 5G networks using equipment not made by Chinese manufacturer Huawei, including by authorizing U.S. International Development Finance Corporation financing for infrastructure development. HR-7372 would create a working group for reporting on the semiconductor supply chain disruptions caused by Russia’s invasion of Ukraine. The group would develop strategies for bolstering supplies of semiconductor materials and monitor potential threats to supply chains.
Russia export controls and sanctions
The use of export controls and sanctions on Russia has surged since the country's invasion of Crimea in 2014, and especially its invasion of Ukraine in in February 2022. Similar export controls and sanctions have been imposed by U.S. allies, including the EU, U.K. and Japan. The following is a listing of recent articles in Export Compliance Daily on export controls and sanctions imposed on Russia:
The FCC approved 4-0 a notice of inquiry asking questions about standards for receivers. As expected (see 2204190053), the main change from what Chairwoman Jessica Rosenworcel circulated were questions on encouraging innovation for both receivers and transmitters, added at Commissioner Geoffrey Starks' request. Commissioner Nathan Simington has made the issue one of his top focuses since he joined the FCC.
The suspension of the Netflix service in Russia and the “winding-down of all Russian paid memberships" sent Q1 global streaming paid net additions into negative territory, reported the company Tuesday. Paid net subscriber losses were 200,000 compared with the outlook for 2.5 million global streaming paid net additions in the Jan. 20 forecast. Russia caused losses of 700,000 paid net adds. Net additions would have been up by 500,000 globally “excluding this impact,” said Netflix. The Q2 forecast is for paid net losses to worsen to 2 million, compared with nearly 1.54 million paid net additions in 2021's Q2. “Our forecast assumes our current trends persist (such as slow acquisition and the near term impact of price changes) plus typical seasonality.”
Ericsson will record “extraordinary costs” of about 900 million Swedish krona ($94.3 million) from its decision to suspend its “effective business in Russia indefinitely,” said CEO Borje Ekholm on a Q1 earnings call Thursday.
The shipping industry is increasingly testing extended use of Arctic waters as climate change makes them more accessible for longer periods of time, but that likely won't be a big emerging market for satellite nautical connectivity, satellite connectivity experts told us. Bandwidth demands, particularly by cruise ship operators, are skyrocketing.
Nokia expects “no impact” to its financial outlook from its decision to exit Russia over the Ukraine invasion, said the company Tuesday. It has been clear to Nokia since the “early days” of the Feb. 24 invasion that “continuing our presence in Russia would not be possible,” it said. “Over the last weeks we have suspended deliveries, stopped new business and are moving our limited R&D activities out of Russia. We can now announce we will exit the Russian market.” Western governments, for “humanitarian reasons,” have expressed concerns about “the risk of critical telecommunication network infrastructure in Russia failing,” said Nokia. Governments have also emphasized the importance of “ensuring the continued flow of information and access to the internet which provides outside perspectives to the Russian people,” it said. “The most responsible course of action” for Nokia as it exits the Russian market is to “aim to provide the necessary support to maintain the networks" by applying for "the relevant licenses to enable this support in compliance with current sanctions,” it said. Nokia drew less than 2% of its 2021 net sales from Russia and expects to take a “provision” of 100 million euros ($108.3 million) on its Q1 results from its decision to leave, it said.
Carriers large and small are feeling pressure to offer 5G to their customers, executives said at a Competitive Carriers Association conference, streamed from Tampa Tuesday. “All broadband is local,” said CCA President Steve Berry: “Broadband deployment, broadband build, is local.”
Chinese companies Huawei and Lenovo are two of the few global tech companies still doing business in Russia nearly seven weeks into the Ukraine invasion, reported John Strand of Strand Consult Tuesday. “There is a consensus among people and organizations in the free world that the invasion is despicable, and hence there is a desire to end relations with Russia,” he said: “Companies interpret that if they continue to do business in the country, that they will suffer backlash from the public and reputational repercussions in future. Moreover, consumers and shareholders are sophisticated [enough] to understand the power of their money to influence political decisions and behavior.”
Broadcast groups and the FCC will face off in oral argument before the U.S. Court of Appeals for the D.C. Circuit Tuesday over the agency’s foreign-sponsored content disclosure rules, and broadcast and appellate attorneys told us it's especially difficult to predict how the matter will play out, with rules that were unanimously approved and with the Russian invasion of Ukraine as a backdrop. “There is simply no need -- and it is unlawful -- to force broadcasters leasing to churches, schools and local businesses, among others, to do pointless research as to whether those lessees are foreign agents,” said an NAB spokesperson Friday. NAB is challenging the rules alongside the National Association of Black Owned Broadcasters and the Multicultural Media, Telecom and Internet Council.
FCC Chairwoman Jessica Rosenworcel said the recently relaunched Cybersecurity Forum of Independent and Executive Branch Regulators should focus on reporting as it starts work. “Right now, there’s a lot of fragmentation across sectors and jurisdictions in what information gets reported, when and how it is reported, and how that information can be used,” she said Friday: “We’ll discuss using this Forum as a place to work toward greater convergence on these matters.” Rosenworcel also urged a focus on executive order 14028, handed down by President Joe Biden in May on improving the nation’s cybersecurity. “When it comes to cybersecurity, there is no question that the risks are real, the stakes are high, and our defenses need to evolve and improve,” she said: “This Forum is part of the nuts-and-bolts work to help get us to where we need to be.” The FCC said officials representing 30 regulatory and advisory agencies participated in the meeting, which included “briefings from senior leaders, updates on the Russia-Ukraine conflict and recent cybersecurity legislation, and discussion of goals and processes.”