House Commerce Committee Chairman Brett Guthrie, R-Ky., told us Tuesday night that he doesn’t see it as a setback that several Senate Commerce Committee Republicans want to pursue alternatives to parts of the House panel’s budget reconciliation package spectrum proposal (see 2505120058), even as some congressional DOD supporters raised their own objections to the measure. House Commerce cleared its spectrum and AI reconciliation language early Wednesday on a party-line, 29-24 vote after Democrats unsuccessfully floated a handful of amendments that reflected their objection to using future FCC auction proceeds as an offset for extending the 2017 tax cuts and other GOP priorities.

States opposing the FCC’s July order implementing the Martha Wright-Reed Act of 2022 have shifted gears in part to challenge whether FCC decision-making is legitimate because of the false premise that the regulator is an independent agency. The order, which reduces calling rates for people in prisons while establishing interim rate caps for video calls (see 2407180039), is under appeal in the 1st U.S. Circuit Court of Appeals (24-8028).

Smartphone prices may increase for wireless customers, but AT&T otherwise faces no major challenges from higher U.S. tariffs (see 2505120050), COO Jeff McElfresh told a JPMorgan financial conference Tuesday. Handset prices are “a moving target” and are likely "going to rise,” he said. Customers “will bear the brunt” of rising costs “as they have over the last many cycles in the industry.”

As greater numbers of satellites are launched, the FCC is making progress trimming its backlog of satellite and earth station applications, FCC Space Bureau Chief Jay Schwarz said Tuesday as the Satellite Industry Association released its 2025 state of the satellite industry report. A record 11,539 operational satellites were in orbit as of the end of 2024, up more than 1,900 from year-end 2023, SIA said.

SpaceX could be the biggest beneficiary as the FCC takes a hard look at EchoStar's compliance with milestones attached to its 5G network buildout. FCC Chairman Brendan Carr's inquiry into EchoStar's compliance with buildout deadlines (see 2505120074) "clearly originate[s]" from SpaceX, LightShed Partners' Walt Piecyk wrote Tuesday. He said the FCC probe appears to be particularly focused on EchoStar's use of the S band -- spectrum real estate that SpaceX wants.

Industry and public interest groups disagreed on a proposed California Public Utilities Commission decision that would set service quality standards for telecom. Their comments about the proposed decision, which Commissioner Darcie Houck wrote in April, were posted Monday (docket 22-03-016).

Senate Commerce Committee Chairman Ted Cruz of Texas is holding off on publicly endorsing or opposing the House Commerce Committee's reconciliation package spectrum proposal (see 2505120058), but he and some other fellow panel Republicans are already looking at potential changes if it emerges from the lower chamber as currently written. House Commerce hadn't yet tackled the reconciliation measure’s spectrum language Tuesday afternoon as panel members traded barbs about the legislation’s proposed Medicaid cuts.

Carriers concerned about rising prices for iPhones and other devices and gear from China got good news early Monday as the Trump administration struck a preliminary agreement to temporarily slash a proposed tariff on Chinese imports from 145% to 30%. “We have reached an agreement on a 90-day pause and substantially moved down the tariff levels -- both sides, on the reciprocal tariffs, will move their tariffs down 115%,” said U.S. Treasury Secretary Scott Bessent.

The actions of independent regulatory commissions, including the FCC, are now being reviewed by the White House via OMB's Office of Information and Regulatory Affairs (OIRA) and its procedures. Former OIRA leaders and other observers said in interviews that the new procedures may not result in substantial revisions of rulemakings by agencies answering directly to President Donald Trump, but they could slow adoption and implementation. In February, Trump ordered the commissions to submit proposed regulatory actions to OIRA before they appear in the Federal Register (see 2502180069). That took effect April 21, according to interim OMB guidance last month.

House Commerce Committee Republicans found some success Monday in selling their Sunday night budget reconciliation proposal -- which would restore the FCC’s lapsed auction authority through FY 2034 and tee up 600 MHz of bandwidth -- as effectively balancing the interests of major communications sector and military stakeholders. But lobbyists cautioned that the measure still faces an uncertain path unless House GOP leaders can win support from Senate Commerce Committee Chairman Ted Cruz, R-Texas, and others in the upper chamber. House Commerce set a Tuesday reconciliation markup session, which will begin at 2 p.m. in 2123 Rayburn.