The Office of the U.S. Trade Representative proposed tariffs on some $50 billion worth of Chinese imports, with an accompanying list including some tech and telecom-related products. "Sectors subject to the proposed tariffs include industries such as aerospace, information and communication technology, robotics, and machinery," the USTR announced. The tariffs likely wouldn't take effect before June as a result of the administrative process. A result of a Trade Act Section 301 investigation, the levies are meant as a response to a pattern of forced technology transfers, intellectual property theft and cyber business espionage. The Chinese ambassador to the U.S. warned Monday that China would likely retaliate with tariffs of similar scope in response to Section 301 tariffs. We couldn't reach anyone right away Tuesday at that country's embassy. Tech groups have opposed the U.S. move (see 1803220043). Comments are due May 11, and there is a May 15 USTR hearing, at 10 a.m. in the main hearing room of the International Trade Commission, 500 E St. SW.
Despite growth in over-the-top subscriptions services, global digital pay-TV subscriptions -- including cable, satellite and IPTV -- exceeded 1 billion for the first time in 2017, IHS Markit reported. Subscription streaming video services including Netflix, Hulu and Amazon Prime Video added more than three times the number of subscriptions they did in 2016, said the researcher Tuesday. “Traditional pay TV operators have shown resilience in the face of increased competition, through continued investment in set-top functionality, exclusive content and on-demand services,” said analyst Fateha Begum. Growth in digital pay-TV came largely from Asia-Pacific, driven by IPTV uptake in China. Western Europe added eight OTT subscriptions for every pay-TV subscription. Digital pay-TV subs in North America continued to shrink, losing 3 million homes in 2017, while OTT subscriptions advanced by nearly 30 million, said Begum. “Pay TV services in North America continue to be affected by cord cutting, primarily due to higher average prices for pay TV subscriptions, compared to other global regions.”
U.S. tariffs could especially hurt the information and communications technologies (ICT) industry, many groups said Friday and Monday, singling out China. That country's trade practices concern these groups, but they said tariffs aren't the answer. "Imposition of sweeping tariffs would trigger a chain reaction of negative consequences for the U.S. economy, provoking retaliation," said a letter to President Donald Trump from CompTIA, the Computer and Communications Industry Association, CTA, Information Technology Industry Council, Internet Association, TechNet, Telecommunications Industry Association and other tech and trade groups. "Tariffs on electronics, apparel, and other consumer products would increase prices" and do "little to address the fundamental challenges posed by unfair and discriminatory Chinese trade practices," they said. The Information Technology and Innovation Foundation said much the same thing: "Artificially raising the cost of ICT products by levying tariffs on ICT imports from China would reduce growth of U.S. ICT investments." The White House didn't comment Monday.
Broadcom formally ended its bid to buy Qualcomm Wednesday, after President Donald Trump, acting on a recommendation from the Committee on Foreign Investment in the U.S., signed an executive order Monday blocking the acquisition on national security grounds (see 1803120060). In complying with the order, Broadcom also withdrew its slate of nominees for election to the Qualcomm board, said the company. “Although we are disappointed with this outcome, Broadcom will comply with the Order,” and will “continue to move forward” with its plan to move its co-headquarters to Delaware from Singapore (see 1711020069), said the company. “Whether you support or oppose recent CFIUS decisions, it provides a deliberative process, a speedy outcome and industry certainty,” tweeted FCC Commission Mike O’Rielly Wednesday. “Similar structure needed for 'Team Telecom' to facilitate @FCC interaction!”
Online platforms should commit to a code of principles to combat online disinformation, the European Commission’s High-Level Expert Group told Commissioner for the Digital Economy and Society Mariya Gabriel Monday. The group emphasized the term “online disinformation” over fake news, calling the latter an “inadequate term.” The group recommended online platforms commit to algorithm transparency on news visibility and allow more visibility for reputable news sources. The report was sent to Gabriel the day of release of a Eurobarometer survey. More than 80 percent said fake news is a “danger to democracy.” Traditional media on radio, TV and print is trusted by, respectively, 70 percent, 66 percent and 63 percent, while online news sources and video hosting websites had 26 percent and 27 percent.
Latin American TV market penetration likely plateaued at 44 percent of TV households, and fewer than 5 million additional pay-TV subscribers are expected by 2023, Digital TV Research said Tuesday. It said Latin American pay-TV subscribers numbered slightly more than 70 million in 2017, flat year over year.
Germany is the best-prepared country for expansion of cloud-computing services, while Japan ranks second, the U.S. third and Vietnam last in a pool of 24 nations, according to BSA. BSA scored countries on data privacy; security; cybercrime; IP rights; standards and rules; promotion of free trade; and IT readiness and broadband deployment. Germany recorded an overall score of 84, Japan 82.1, the U.S. 82 and Vietnam 36.4. Russia and China ranked 21st and 22nd, respectively, with scores of 45 and 43.7.
It’s in the best interests of government, industry and civil society to keep the internet open and data flowing around the globe, said NTIA Administrator David Redl Wednesday at the Global Internet and Jurisdiction Conference in Ottawa. Free flow of data has resulted in widespread economic growth and educational opportunities and opened communication lines for marginalized populations, he said. It’s up to open internet advocates to “persuade those on the other side of the debate that the challenges of the free flow of data are far outweighed by the benefits,” he said.
Sixty-seven percent of people believe internet access is a human right, Facebook reported Monday. It said a significant gender gap remains, as men on average are 33.5 percent more likely than women to have access. Global internet connectivity grew 8.3 percent in 2017, but lower-income countries had a 65.1 percent increase. The largest increases were Rwanda (490 percent), Nepal (138 percent) and Tanzania (87.8 percent). Cost of mobile broadband data plans in lower-income nations fell 17 percent, the steepest drops in Argentina (89 percent), El Salvador (77 percent), Tanzania (69 percent) and Ethiopia (61 percent). Facebook said internet remains too expensive when compared with income, because lower-income countries haven't met the U.N. 2025 goal of internet access at 2 percent of gross national income per capita.
Comments will be due in 30 days on an FCC request to the Office of Management and Budget for approval of a change in the OMB reporting requirement that facilities-based international service providers submit and maintain a list of routes on which they have direct termination agreements with a foreign carrier, says Thursday's Federal Register. The commission said it's seeking input on whether collection of common carrier international telecommunications service information is necessary for FCC functions, and ways to reduce the data collection burden.