Proposed Commerce Department Bureau of Industry and Security rules on emerging technologies may not be published until early next year, another sign of delay that has plagued the rules since their November 2018 announcement. Commerce has three emerging technology rule proposals in “various stages of clearance,” Hillary Hess, BIS Regulatory Policy Division director, told Tuesday's Regulations and Procedures Technical Advisory Committee meeting. The agency hopes to publish one proposal before the end of the year, Hess said, urging committee members take any prediction with “at least a handful of salt.” The process has been “very fraught,” she said. “There’s not a lot of year left, but it’s still theoretically possible.” Also at the meeting, restrictions on Huawei were discussed (see 1912110039).
FCC Chairman Ajit Pai and his Canadian counterpart, Ian Scott, chair of the Canadian Radio-television and Telecommunications Commission, completed their first official cross-border call using new authentication technology for combating illegal caller ID spoofing, said the FCC Monday. “Spoofed, scam robocalls are an international problem,” said Pai and Scott. Americans and Canadians “are being bombarded by these calls, which are too often used to defraud consumers and target some of our most vulnerable communities.” The FCC and CRTC “are committed to combating robocalls by aggressively attacking the use of caller ID spoofing.”
Huawei petitioned the 5th U.S. Circuit Court of Appeals to overturn the FCC banning rural eligible telecom carriers from using USF programs to buy equipment that could come from the Chinese firm, the company said Thursday. Last month, the FCC voted, for national security, to ban Huawei and ZTE equipment on networks bought with USF dollars (see 1911220033). The FCC declined comment now.
Global semiconductor sales were $36.6 billion in October, a 2.9 percent increase sequentially from September but down 13.1 percent from October 2018, reported the Semiconductor Industry Association Tuesday. It’s projecting 2019 sales will decrease 12.8 percent before rising 5.9 percent in 2020 and 6.3 percent in 2021. Though the market “slumped somewhat” in 2019, “the recent trend is more positive, with month-to-month sales increasing in October for the fourth consecutive month,” said SIA.
The FTC announced settlements Tuesday with four companies that “allegedly misrepresented” participation in the EU-U.S. Privacy Shield framework. Click Labs, Incentive Services, Global Data Vault and TDARX falsely claimed participation, the agency alleged. Click Labs and Incentive Services also “claimed to participate in the Swiss-U.S. Privacy Shield framework,” the agency said. The companies face civil penalties of up to $42,530 per violation for future infractions and are barred from further misrepresentation. They didn’t comment.
The EU shouldn't ignore U.S. urgings that it create national standards on potential network-based threats to privacy, security and intellectual property when it discusses 5G safeguards this week in Brussels, Secretary of State Mike Pompeo wrote Monday for Politico. China's Huawei has a troubling business track record of ties to the Chinese People's Liberation Army, bribery and IP theft, but securing 5G goes further than blocking any one company from building those networks, he wrote. Huawei didn't comment. Pompeo said such suppliers as Nokia, Samsung and Ericsson don't pose the same dangers as Chinese companies.
A U.S. foundation representing organizations in the semiconductor technology sector will move to Switzerland due to concerns over U.S. trade restrictions, according to a Nov. 25 Reuters report. RISC-V Foundation, a nonprofit, said it has not yet faced restrictions but is “concerned about possible geopolitical disruption,” according to Reuters. The move comes as the Commerce Department restricts sales to certain Chinese technology companies and prepares to release proposed restrictions on emerging and foundational technologies. A spokesperson for RISC-V declined to answer questions but referred to a message on the foundation’s website that says the move “has the effect of calming concerns of political disruption to the open collaboration model.” The company stressed that it does not have any commercial interest in the goods that may be restricted and there have “not been any export restrictions on the Foundation in the U.S.” A Commerce Department spokesperson said its export controls are designed to “ensure bad actors cannot acquire technology that harms U.S. citizens or interests, while promoting innovation to fuel continued American technological leadership.” Commerce “meets regularly” with industry members for input, the spokesperson said, including on “technological developments, market conditions and the effects of its regulations.”
The migration to 5G “isn't just about wireless,” said Analog Devices CEO Vincent Roche on a fiscal Q4 call Tuesday. It will also require “a complete re-architecting of the core and wireline network to meet the 5G vision of gigabit speeds, low latency and high reliability demanded by mission-critical applications,” he said. “This network expansion will require a significant upgrade of the backhaul system, opening a new revenue opportunity,” he said. The chipmaker's ambitions include supplying optical and "point-to-point microwave solutions" to 5G networks, he said. Its 5G infrastructure design wins “are moving to low-volume production in 2020, ahead of a more meaningful ramp in 2021,” he said. Analog Devices expects 5G demand to “remain modest” for the rest of calendar 2019, “with a positive inflection in demand to occur in the fiscal second quarter as the global 5G rollout ramps,” said Chief Financial Officer Prashanth Mahendra-Rajah.
DOJ “presently has no intention” to mount an antitrust challenge to the GSM Association’s newly “promulgated” Remote SIM Provisioning (RSP) specification for embedded SIMs (eSIMs), as long as they're based on revised and improved standard-setting procedures, it told GSMA in a business review letter Wednesday. GSMA requested the letter in July. GSMA's new standards practices, called AA.35, are "meant to allay competition concerns by yielding standards that limit the design of RSP and eSIMs only to the extent it would be beneficial to the diverse group of interested parties in the mobile wireless industry,” said DOJ. The department over a two-year investigation "developed significant concerns" that GSMA’s process for fashioning the previous RSP spec was “deeply flawed and enabled competitors to coordinate anticompetitively,” it said. GSMA practices gave its mobile network operator members “certain privileges not available to other members and participants, “allowing that single interest group to exercise undue influence in the standard-setting process,” said DOJ. Those practices amounted to “an agreement among competitors to limit options available in the market in such a way as to benefit the incumbent operator members by reducing their competitive pressures,” it said. The department believes AA.35 has “sufficient protections to minimize the chances of anticompetitive self-dealing inside the GSMA, it said. DOJ will “closely observe” how the new procedures are “applied,” and whether they succeed “in promoting interoperability without marginalizing non-operators’ ability to represent their interests in preserving the maximum freedom to respond to consumer demand for innovation,” it said. DOJ's letter "agreed" that AA.35 industry standards "benefit consumers by helping technologies work together at lower costs," said the association Wednesday. "GSMA standards are always voluntary and reflect an industry consensus." DOJ's investigation "reviewed millions of documents covering a multi-year and complex process to establish common standards for eSIM technologies," it said. Wednesday's letter is "conclusive that the agency found no violation of antitrust laws,” it said. GSMA will release the new eSIM standards "within months, it said.
The Commerce Department proposed new procedures for reviewing transactions, including imports, that involve information and communications technology and services seen as a potential national security threat, it said Tuesday. The proposed rules are aimed at implementing President Donald Trump's May executive order, which directed Commerce to issue regulations to bar some foreign companies' technology from U.S. networks. The order was seen potentially targeting Chinese's Huawei and ZTE (see 1905150066). Commerce proposes "a case-by-case, fact-specific approach to determine those transactions that meet the requirements" in the EO. Parties subject to it will be expected to "maintain records related to such transaction in a manner consistent with the recordkeeping practices used in their ordinary course of business for such a transaction," Commerce says in Wednesday's Federal Register. Transactions are "any acquisition, importation, transfer, installation, dealing in, or use of any information and communications technology or service." Transactions subject to the reviews are any that involve people or property under U.S. jurisdiction, plus "any property in which any foreign country or a national thereof has an interest," it says. Transactions "initiated, pending, or completed" after May 15 would be subject to review. Comments are due Dec. 27 in docket DOC-2019-0005 via Regulations.gov. The Telecommunications Industry Association “has long maintained that supply chain risk management is best addressed by public-private partnerships and consensus-based, industry-driven standards, but there is a place for targeted and careful government intervention,” said CEO David Stehlin. “Today’s rules exemplify this approach and, through the invitation of comments from industry, represent a clear step forward towards a public-private effort." USTelecom is glad Commerce accepted “our recommendation to seek industry comment before establishing interim final rules, a process that should reduce the risk of unintended consequences,” said Senior Vice President-Cybersecurity Robert Mayer. “We are especially encouraged the Department has already adopted a process to determine whether a transaction meets the requirements.” The Information Technology Industry Council appreciates Commerce's “wise decision to issue proposed rather than final rules to maximize the ability of the Department to account for crucial industry feedback,” said CEO Jason Oxman. “The tech industry will continue to engage with the White House, Commerce, and other stakeholders to ensure this process furthers important national security imperatives while allowing U.S. innovation to thrive as it is finalized.”