Can 5G pay for infrastructure?
Presented by NCTA  The Internet & Television Association  With help from John Hendel and Sam Sabin  Editors Note: Morning Tech is a free version of POLITICO Pro Technology's morning newsletter, which is delivered to our subscribers each morning at 6 a.m. The POLITICO Pro platform combines the news you need with tools you can use to take action on the days biggest stories. Act on the news with POLITICO Pro. Quick Fix   Tapping the airwaves: The Biden administration wants to use proceeds from spectrum auctions to pay for its latest infrastructure deal. Its unclear how that might work. House Speaker Nancy Pelosi has given a general thumbs-up to the Houses antitrust push, but privacy advocates have some concerns about the data portability bill.  Winds a-changin: New chair Lina Khan is already making her presence felt at the FTC  and Republicans are chafing at the changes. ITS FRIDAY! MORNING TECH IS READY FOR THE WEEKEND. Im your host, Benjamin Din. The markup adjourned Thursday at 3 p.m. on the dot  29 hours after it started. A big congrats to ACGs JOE ZANONI and CCIAs ARTHUR D. SIDNEY for staying up late to watch the markup. It wasnt easy, but lawmakers fumbling on Zoom (and someones mint-green blazer) kept me going through the night. Email [email protected]. Send details to [email protected]. Team info below. And don't forget: Add @MorningTech and @PoliticoPro on Twitter. A message from NCTA  The Internet & Television Association: In the wake of COVID-19, a reliable internet connection has become more critical than ever. But connecting all Americans to broadband requires smart solutions  targeting funding where it is needed most and providing a permanent safety net so that everyone can participate. The cable industry is committed to being part of the solution by expanding and upgrading infrastructure throughout America, offering low-cost plans that promote internet adoption, and building the 10G network of the future. Tech of the Town  INFRASTRUCTURE DEAL PINS FUNDING HOPES ON 5G AIRWAVES  The FCC is emerging as a key part of the still-murky framework that President Joe Biden and a bipartisan crew of centrist senators rallied around Thursday. The deal would put $65 billion toward broadband investment. But where that money would come from was left vague at best. The provided outline says 5G spectrum auction proceeds and state and local investment in broadband infrastructure will provide funding, but doesnt elaborate. The office of Sen. Mark Warner (D-Va.) told MT the latter investment bit refers to $20 billion in money already allocated in the March pandemic relief plan. Lawmakers have long sought to direct revenue from FCC sales of spectrum for purposes like this, including concerted efforts in recent years to set aside that revenue for efforts to close the digital divide. (Normally this cash goes straight to the Treasury to pay down debt unless Congress specifies otherwise.) The recent FCC sale of C-band airwaves raised more than $80 billion, but final payments from winning bidders were due in March and its not clear that money can still be tapped. But the agencys next sale of 5G airwaves is in October, and Congress could direct revenue from that. (Tanya Snyder, Sam Mintz and John have a full rundown for Pros on the proposed pay-fors.)  Upshot of a smaller package: That $65 billion for broadband is well below Bidens original $100 billion ask. Democrats originally wanted to spend this money on super-fast fiber-optic connectivity, but having less money to work with could pressure them to tap more deployment methods, including wireless and satellite options. (Tuesdays Senate hearing reflected those tensions.) Satellite is the least expensive way to connect rural America, EchoStar senior VP Jennifer Manner told John, describing what the satellite provider told the White House. Where satellite serves the most robust customer base, fiber operators have either not shown up at all or are fleeing the market due to the economics.  Despite the lower amount, Biden still argued Thursday that the proposed broadband investments would deliver high-speed internet to every American home and end up bringing down the price that people pay for internet service  he just didnt say how.  Thursdays MT asked what Pelosi thinks about the antitrust bills. And just a few hours later, she told reporters that she supported the Houses efforts to rewrite antitrust laws. (She was responding to a question, but MT will take it as a win.) Pelosi is in a unique position: The San Francisco Democrat represents a district home to thousands of tech employees  as do Reps. Ro Khanna, Eric Swalwell and Zoe Lofgren, all fellow Bay Area Democrats. But shes also been hands-off of the House Judiciary Committees antitrust push, starting with its 16-month investigation into the tech giants, antitrust Chair David Cicilline (D-R.I.) told Emily.  Close reading: Pelosis Thursday morning remarks didnt dig into the specifics of the legislation (and she didnt say if shed put the bills on the floor in their current form), but she did say she wouldnt block the effort because of concerns it will hurt innovation or the tech companies. For more on how Californias lawmakers are banding against the sweeping antitrust legislation, read Emilys latest story for Pros.  House Judiciary members spent hours arguing over a data portability bill that would require major online services to allow users to transfer their data across platforms  but questions remain on how to minimize the risk of data breaches. But the ACCESS Act, H.R. 3849 (117), has faced scrutiny from lawmakers, Apple and privacy advocates, over what they say is a lack of clarity around how the data thats transferred from one system to another would be secured. The act was amended at the markup to address concerns, but the legislation needs to tighten security around user data, said Mitch Stoltz, senior staff attorney at digital rights group Electronic Frontier Foundation.  Not the only one: Lofgren said during the markup she has substantial concerns that the legislation could put user data at risk of exposure, but she hopes to work with sponsor Rep. Mary Gay Scanlon (D-Pa.) to resolve her concerns. Swalwell raised similar privacy and cybersecurity concerns. Apple also sent a letter to House Judiciary leaders earlier this week raising similar concerns, as Cristiano reported for Pros. But Warner and Sen. Richard Blumenthal (D-Conn.) said in a joint statement that the bill would allow consumers to move their data away from dominant platforms that are often insensitive to consumers privacy, content or platform security expectations, and advocacy group Accountable Tech shared similar sentiments in a memo Tuesday. THERES A NEW SHERIFF AT THE FTC  Khan has only been chair for a week and a half, but shes already making her mark by promoting like-minded staffers to key posts and bucking agency norms.  The Chopra connection: Khan is elevating staff members from FTC Commissioner Rohit Chopras team to top enforcement roles in antitrust and privacy, as Leah and Alex reported for Pros. Chopras top antitrust aide, Holly Vedova, will be acting director of the agencys competition bureau, and Chopra adviser Sam Levine will be acting director of the consumer protection bureau. (Those roles need to be approved by the commission, hence the acting.) Erie Meyer, who co-founded the U.S. Digital Service, will be chief technologist. As Chopra alumni, the new agency leaders will pair well with Khans more aggressive enforcement approach. The picks are not surprising: Khan herself was once Chopras legal adviser. (Her new chief of staff, Jen Howard, was also Chopras.)  On the agenda: In an unusual move for the agency, Khan announced an open commission meeting would be held on July 1. "I'm struggling without success to remember when the agency held its last open meeting," former FTC general counsel Stephen Calkins tweeted. One to-do item stands out in particular: Commissioners will vote on whether to rescind the FTC's 2015 policy statement related to enforcing "unfair methods of competition" under Section 5 of the FTC Act, which requires the FTC to consider "the promotion of consumer welfare" and "business justifications" as core principles. GOP Commissioner Christine Wilson was not pleased, and neither was Sen. Mike Lee (R-Utah). The Senate Judiciary antitrust ranking member said he was disappointed in Khans decision to vote on rescinding the statement, which he noted was supported by Democrats at the time it was issued and would also signal that the Commission rejects the idea that there are any limits to its power or regulatory reach.  ELECTRIC UTILITY WARNS FCC OF AIRWAVES DISRUPTION  Georgia-based electric utility Southern Company told the FCC on Thursday that, based on its testing, the unlicensed Wi-Fi use the agency has voted to allow in the 6 GHz band will disrupt incumbent services that utilities offer. (It also submitted a full report.) Utilities Technology Council CEO Sheryl Osiene-Riggs said she hopes the results will convince the FCC that they should cease permitting new devices in the 6 GHz band until it can fully protect the existing public safety and utility users in the band.   FCC says no comment: This spectrum spat will be one to watch. Both Republican and Democratic commissioners were bullish on the Trump-era vote to open the whole band for Wi-Fi use, which the tech and cable industries welcomed. The D.C. Circuit Court of Appeals this week scheduled oral arguments in a court fight over the FCCs decision for Sept. 17. Transitions  Jerry Sheehan is now assistant director for scientific integrity and data access at the White House Office of Science and Technology Policy. He was deputy director of the National Library of Medicine at the National Institutes of Health.  POLITICOs Susannah Luthi is leaving the health care beat and will now report on tech influence in California. The FCCs Advisory Committee for Diversity and Digital Empowerment will be re-chartered as the Communications Equity and Diversity Council and expand its focus to cover diversity and equity issues across the tech sector.  Mozilla is partnering with researchers at Princeton University to use Mozilla Rally, its privacy-first data sharing platform, to crowdsource data for public good. Silicon Valley Must-Reads  Thats pretty clever: Lord of the Roths: How Tech Mogul Peter Thiel Turned a Retirement Account for the Middle Class Into a $5 Billion Tax-Free Piggy Bank, ProPublica reports. Sneaky, sneaky: Gig workers around the world are unknowingly providing the U.S. military with basic intelligence, WSJ reports. Quick Downloads  Lets make a deal: Snap now has a licensing deal with Universal Music Group, giving users access to songs from artists like Taylor Swift and Drake, Bloomberg reports. In related news: Reps. Ted Deutch (D-Fla.) and Darrell Issa (R-Calif.) are renewing the radio royalties fight with the American Music Fairness Act, via Variety. Ethical AI: IBM explores AI tools to spot, cut bias in online ad targeting, via Reuters. ICYMI: Google wont get rid of advertising cookies until 2023, Simon Van Dorpe and Vincent Manancourt report. Send them along via email to our team: Bob King ([email protected]), Heidi Vogt ([email protected]), John Hendel ([email protected]), Cristiano Lima (c[email protected]), Alexandra S. Levine ([email protected]), Leah Nylen ([email protected]), Emily Birnbaum ([email protected]), and Benjamin Din ([email protected]). Send details to [email protected]. And don't forget: Add @MorningTech and @PoliticoPro on Twitter. HAVE A GOOD WEEKEND! A message from NCTA  The Internet & Television Association: When America needed it most, cables broadband networks were ready. The robust and reliable infrastructure supported the surge in traffic, keeping our economy moving, students learning, and families connecting. The industry also worked to expand access by adding more low-cost programs to reach more people. Meanwhile, they have continued progress on building the 10G network of the future, which will deliver home internet speeds of up to 10 gigabits per second, with enhanced capacity, reliability, and security. But connecting all Americans to broadband requires smart solutions  targeting funding where it is needed most and providing a permanent safety net so that everyone can participate. The cable industry is committed to being part of the solution by expanding and upgrading infrastructure throughout America, offering low-cost plans that promote internet adoption, and building the 10G network of the future. Follow us on Twitter Heidi Vogt @HeidiVogt    Alexandra S. Levine @ali_lev    John Hendel @johnhendel    Cristiano Lima @viacristiano    Leah Nylen @leah_nylen    Benjamin Din @benjamindin    Emily Birnbaum @birnbaum_e