National

Pressure is growing for the U.S. to develop a plan to quickly build internet lifelines for people living in conflict zones or under repressive regimes.

Why it matters: The absence of a strategy has led to a reliance on the ad hoc goodwill of private companies, such as Elon Musk's donation of Starlink satellite internet service in Ukraine.

State of play: Republicans are sounding the alarm about the need to ensure internet connectivity as a U.S. foreign policy priority.

Federal Communications Commissioner Brendan Carr told Axios the U.S. needs both the ability to quickly deploy internet networks and surge the production of censorship-circumvention online tools in authoritarian countries.

"Providing broadband is a lot less interventionist than providing bombs," Carr told Axios. "I think it's an important tool in in the arsenal."

Rep. María Elvira Salazar (R-Fla.) introduced a bill last year that would create a strategic plan to deploy technology capable of rapidly delivering wireless internet anywhere on the planet in times of crisis abroad or in the U.S.

Catch up quick: SpaceX founder Elon Musk agreed to provide Starlink satellite internet terminals to Ukraine to help maintain online connections amid the Russian invasion.

In April, the United States Agency for International Development (USAID) announced that it had delivered 5,000 Starlink terminals to Ukraine.

But Musk recently warned the company could not provide the service indefinitely and sought Pentagon funding, before reversing and saying the service will continue.

"We should not be in this situation where we're relying purely on the voluntary goodwill of a private corporation to provide connectivity services that many here in America view as vital to U.S. national security interests," Carr told Axios.

Reality check: Standing up internet infrastructure in a hostile country is easier said than done for technological and diplomatic reasons.

Satellite internet connections require dishes or terminals on the ground for people to receive the connections — which can be logistically difficult to deliver or risky for the user to be seen with one in an authoritarian country.

There were calls during protests in Cuba to deliver internet via high-altitude balloons, but those signals can be jammed. The most high-profile provider of such a service, Google's Loon, shut down in January 2021 because it was not commercially viable.

"Internet access requires a combination of technologies, especially to provide access at scale and across large distances, which is why it usually requires support by local governments," a senior NSC official told Axios.

"Absent the local government, the provision of internet service can carry significant risks."

The big picture: Beyond the internet infrastructure itself, crackdowns on online freedom around the world have shown the need for anti-censorship and surveillance tools.

Demand for virtual private networks that evade online restrictions surged in Iran during a government internet shutdown over protests.

The U.S. government relaxed sanctions in Iran to allow tech companies more latitude in providing services to citizens looking to evade government surveillance.

Authorities in Cuba last year blocked access to social media and other online sites in response to anti-government protest.

Between the lines: The U.S. foreign policy work on internet freedom is largely focused on thwarting online censorship, not building the infrastructure.

USAID has worked with an association of communications companies in Ukraine to help facilitate repairs of fiber optic systems during the invasion, a spokesperson said.

The Open Technology Fund, a grantee of the U.S. Agency for Global Media, develops counter-censorship tools.

What they're saying: "The administration has been able to continue to dedicate significant resources to support technology that allows users to access and use the internet, despite efforts by repressive governments to block, filter, throttle or monitor them," the NSC official told Axios.

 The intrigue: There's been bipartisan interest among lawmakers in stepping up funding for U.S. efforts to develop new online tools to support democracy globally.

A bipartisan bill led by Sen. Bob Menendez (D-N.J.), chairman of the Foreign Relations Committee, would authorize roughly $125 million in funding for internet freedom programs and tools. It is expected to be included in annual defense funding bill this year, an aide confirmed.

Reps. Tom Malinowski (D-N.J.) and Mike Gallagher (R-Wisc.) have called for congressional appropriators to provide $35 million to the Open Technology Fund.

The bottom line: "You’re not going to stop government surveillance by getting billionaires to crowd fund an internet access program for Iranians, Russians, Ukrainians, Hongkongers, and others fighting the information war," Malinowski told Axios in a statement. 

"If America’s going to lead the free world, we’re going to have to be willing to double and triple our investments in the tools that Iranian and Russian dissidents are jumping on to avoid government snooping.”

Lack of global internet lifelines prompts calls for a U.S. plan

Pressure is growing for an internet plan for people living in conflict zones or under repressive regimes.

Illustration of a wifi signal parachuting downward

Internet

Elon Musk

Surveillance

Data privacy

Pressure is growing for the U.S. to develop a plan to quickly build internet lifelines for people living in conflict zones or under repressive regimes.Why it matters: The absence of a strategy has led to a reliance on the ad hoc goodwill of private companies, such as Elon Musk&#x27;s donation of Starlink satellite internet service in Ukraine.

From the Valley to D.C., Big Tech players like Facebook, Google and Amazon are under more scrutiny than ever as new technology develops and privacy and antitrust concerns grow in lockstep with companies’ ambitions.

Technology

States are shoring up expertise in high-speed internet networks by creating or expanding broadband offices to prepare for an influx of infrastructure cash.

Why it matters: Ensuring that more than $40 billion in new funding connects every American to high-speed internet service is a job that's falling to the states — and they need help.

Driving the news: Of all the job openings posted for states' burgeoning broadband offices, the "director" position is the most common vacancy, according to data The Pew Charitable Trusts shared with Axios.

Directors are often responsible for crafting state broadband plans and overseeing hundreds of millions in funding from multiple state and federal programs.

The Pew tracker found 15 director-level positions posted, out of about 68 total positions since September 2021. Washington, Colorado, and Maine had the most job postings.

What's happening: The Broadband Equity, Access and Deployment Program (BEAD), funded by the bipartisan infrastructure law, will provide $42.45 billion to expand high-speed internet access by funding planning, infrastructure deployment and adoption programs in all 50 states, D.C., Puerto Rico and U.S. territories.

The release of these funds will be tied to eligible entities' five-year action plans, initial and final proposals, according to the program's FAQ.

State of play: Before the pandemic, about half of states had a broadband office. 

Now, all 50 states have some sort of program, and many are trying to expand, Anna Read, a senior officer with Pew's broadband access initiative, told Axios.

"Many of these offices were one or two-person operations prior to the availability of federal funding," Read told Axios. "Many states are hiring now, and growing the size of their offices to manage the federal funding."

Between the lines: States have been able to use federal funding from COVID relief packages to start their broadband offices or add people to them.

"All of this is sort of growing in anticipation of this big pile of money that's coming from the infrastructure act, that hasn't gone out the door yet," Lynn Follansbee, vice president of strategic initiatives and partnerships for broadband industry trade group USTelecom, told Axios.

Flashback: Many states established broadband offices in response to the creation of the State Broadband Initiative program by the American Recovery and Reinvestment Act of 2009, according to the Pew report.

But many of the offices shut down when federal funding stopped flowing, Pew noted.

Zoom in: Louisiana passed a law in 2020 creating its Office of Broadband and Connectivity, and hired the first executive director for broadband development and connectivity last year.

In about a year, the state dedicated $170 million in funding expected to connect 80,000 locations to internet service via a new program, "Granting Unserved Municipalities Broadband Opportunities" (yes, GUMBO for short), executive director Veneeth Iyengar told Axios.

Louisiana was the first state to secure federal planning dollars from the infrastructure package, and Iyengar said his three-person office views GUMBO as a pilot for how to spend that money wisely.

"We hit the ground running," Iyengar told Axios. "We've probably criss-crossed the state three times over. We've met with thousands of people, all to better understand what the situations are for broadband locally."

Zoom out: Some states already had been using state funding for broadband ahead of the pandemic, but with federal dollars flowing, states are trying to make sure they're ready.

"The whole goal of this program to make sure that every single American has broadband," Follansbee told Axios. "Regardless of whether it's a small number in your state or a big number, you've got to make that happen — and quickly."

What to watch: Applications for initial planning funds were due in August. Recipients of planning funds will have 270 days to create a five-year action plan,  which should lay out their "goals and approaches to broadband access, affordability, equity, and adoption," according to the program's FAQ.

New hot job: State high-speed internet network director

As states mobilize to use billions in new broadband funding, they're hiring leaders to spend the money.

Illustration of a conductor's hand controlling ethernet cables. 

Broadband

States are shoring up expertise in high-speed internet networks by creating or expanding broadband offices to prepare for an influx of infrastructure cash.Why it matters: Ensuring that <a class="gtmContentClick" data-vars-link-text="more than $40 billion in new funding" data-vars-click-url="https://www.axios.com/2021/11/08/infrastructure-bill-broadband" data-vars-content-id="95d11cd4-8976-4565-ae0f-e767cf305f58" data-vars-headline="New hot job: State high-speed internet network director" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2021/11/08/infrastructure-bill-broadband" target="_self">more than $40 billion in new funding</a> connects every American to high-speed internet service is a job that&#x27;s falling to the states — and they need help.

Democrats talked a big game about reining in Big Tech, but after nearly two years of controlling the agenda in Washington, they've got little to show for it.

Why it matters: Pledges to tackle data surveillance practices, harm to children's mental health and tech giants' power over wide swaths of the economy haven't yet translated into passing new laws, and the clock is running out.

State of play: The remaining days for legislative action are winding down for this Congress as midterm elections approach, with lawmakers already planning a packed schedule for the lame-duck session to fund the government and consider proposals on marriage equality and election reform.

That leaves little time for tech policy bills, even those with some bipartisan support, such as antitrust and privacy measures.

What happened: High-profile bills that would heap new regulations on the tech industry have advanced, but they've yet to cross the finish line into law. Here's where Congress stands on some of the major issues in the sector.

1. Antitrust: The House Judiciary Committee passed a package of bills that would alter how Amazon, Apple, Google and Meta operate after a marathon markup in June 2021, and the Senate Judiciary Committee passed some similar measures earlier this year.

But despite a pressure campaign from supporters for a Senate floor vote before the summer recess, the most ambitious antitrust proposals have stalled.

Meanwhile, the House passed a bill in September that will raise filing fees for large mergers, using the proceeds to fund antitrust enforcement efforts. It also passed another bill that will help state attorneys general bring antitrust cases in the venue of their choice.

2. Privacy — Democratic and Republican leaders of the House Energy & Commerce Committee authored a federal privacy bill that passed out of their committee by a bipartisan vote in July. 

The American Data and Privacy Protection Act would require companies to minimize the amount of personal information they collect from consumers, among other requirements.

But House Speaker Nancy Pelosi (D-Calif.) voiced reservations about the bill's potential to limit her home state's privacy law.

3. Children's online safety — Revelations from Facebook whistleblower Frances Haugen about social media's negative effects on children spurred congressional hearings as well as legislation aimed at forcing companies to better protect the interests of children online.

The Kids Online Safety Act from Sens. Richard Blumenthal (D-Conn.) and Marsha Blackburn (R-Tenn.) would require platforms to prevent and mitigate specific harms, including the promotion of self-harm, suicide, eating disorders and substance abuse.

The bill advanced from the Senate Commerce Committee in July, as did a children's privacy bill, but neither have companion legislation in the House. 

Between the lines: Even bipartisan support in a 50-50 Senate wasn't enough to speed these bills to passage. 

That's in part because the bills need to clear a 60-vote filibuster threshold to become law, exacerbating tensions between Democrats who favor stricter rules and Republicans who have more pro-business philosophies.

Yes, but: Democrats and Republicans did come together to pass new laws with major implications for the tech sector.

President Biden signed into law a $280 billion package meant to boost the domestic chip-making industry and scientific research.

In fall 2021, Congress passed the Infrastructure Investment and Jobs Act, which included $65 billion to improve high-speed internet access and affordability.

What they're saying: Rep. David Cicilline (D-R.I.), chairman of the House Judiciary antitrust subcommittee, said antitrust bills meant to regulate app stores and ban companies like Amazon from favoring their own products in an anticompetitive way are "wildly popular with voters." 

"There has been no tech competition legislation passed since the dawn of the internet because gatekeeper platforms will stop at nothing to maintain their market power," Sen. Amy Klobuchar (D-Minn.), lead sponsor of the American Innovation and Choice Online Act, told Axios in a statement.

Democrats are proud of the progress they've made —  "especially in an equally divided Senate" — on broadband funding, investing in scientific research and in confirming Biden's tech nominees, including Federal Trade Commission chair Lina Khan and commissioner Alvaro Bedoya, a spokesperson for Sen. Maria Cantwell (D-Wash), chairwoman of the Senate Commerce Committee, told Axios.

House Energy & Commerce Committee chairman Frank Pallone (D-N.J.) is continuing to "build momentum" for the data privacy bill, and "hopes to see it signed into law before the end of the year” a spokesperson told Axios.

What's next: Majority Leader Chuck Schumer (D-N.Y.) warned there will be an "extremely busy" agenda in the lame-duck session, with the Senate also set to take up must-pass defense funding legislation this month.

The bottom line: Tech regulation lost out to COVID, the economy and a massive climate, health and tax spending package for much of this Congress.

What's next: If Republicans take control of Congress, their natural antipathy toward new market restrictions could prove to be an even bigger barrier to tech regulation.

How Democrats' big plans for Big Tech shrank to tiny steps

After nearly two years of controlling the Washington agenda, Democrats have enacted only a sliver of their agenda.

Illustration of a donkey standing in a large donkey hoof print. 

Congress

Politics & Policy

China

Axios China

The Federal Communications Commission plans to ban all sales of new Huawei and ZTE telecommunications devices in the U.S. — as well as some sales of video surveillance equipment from three other Chinese firms — out of national security concerns, sources with direct knowledge of the private deliberations told Axios.

Why it matters: The move, which marks the first time the FCC has banned electronics equipment on national security grounds, closes a vise on the two Chinese companies that began tightening during the Trump administration.

The ban marks the culmination of years of warnings from security researchers, analysts and intelligence agencies that the Chinese government could use  Chinese-made telecommunications equipment  to spy on Americans. 

The price could come in higher costs for some smaller telecommunications providers that favored the Chinese companies' products thanks to their aggressive pricing.

Behind the scenes: On Oct. 5, FCC Chairwoman Jessica Rosenworcel circulated a draft order among her fellow commissioners. The order — which still needs to be voted on — would effectively ban new equipment sales in the U.S. from firms that pose a threat to national security, two sources with direct knowledge told Axios.

The order would ban telecommunications equipment from Chinese telcos Huawei and ZTE. The FCC previously prohibited companies from using federal funding to purchase equipment from these firms, but the new order would extend this ban to all purchases.

The FCC order will also determine the scope of a ban on sales of video surveillance equipment used for public safety. This would affect the Chinese companies Hytera Communications Corporation, Hikvision and Dahua Technology Company, the sources told Axios.

Yes, but: The ban is not retroactive, so the companies can continue to sell products that the FCC previously approved, one source told Axios.

New models or equipment that would need a new FCC approval, however, would be banned.

What they're saying: "Hikvision presents no security threat to the United States," a Hikvision spokesperson told Axios in a statement. "There is no technical or legal justification for why Hikvision should be impacted by the forthcoming Federal Communications Commission (FCC) rules."

Huawei and ZTE did not respond to requests for comment.

Flashback: The FCC was required to vote on the order within a year of the passage of the Secure Equipment Act, which President Biden signed into law on Nov. 11, 2021.

That law required the FCC to ban equipment sales by companies that pose an "unacceptable risk to the national security" of the U.S.

FCC Commissioner Brendan Carr in March 2021 called on the agency to close the so-called "Huawei loophole" which allowed companies to use private sector money to buy equipment from the firm because the FCC still authorized sales of its devices.

FCC poised to ban all U.S. sales of new Huawei and ZTE equipment

The planned move marks a deepening trade rift amid heightened national security fears over Chinese tech.

Illustration of a telecommunications tower with red "ban" signs over the satellite dishes

Federal Communications Commission (FCC)

The Federal Communications Commission plans to ban all sales of new Huawei and ZTE telecommunications devices in the U.S. — as well as some sales of video surveillance equipment from three other Chinese firms — out of national security concerns, sources with direct knowledge of the private deliberations told Axios.Why it matters: The move, which marks the first time the FCC has banned electronics equipment on national security grounds, closes a vise on the two Chinese companies that began tightening during the Trump administration.

After a record economic expansion, the coronavirus pandemic sent the U.S. economy into a recession as unemployment soared to staggering heights. The country now faces urgent questions about how much stimulus is needed for reeling consumers and businesses, and what a recovery might look like.

Economy & Business

A bipartisan group of lawmakers urged Google, Amazon Web Services and other tech companies Thursday to expand access to online tools and services for Iranian protestors after the U.S. Treasury Department relaxed restrictions last month.

Why it matters: Iranians protesting the death of 22-year-old Mahsa Amini while she was in police custody are trying to evade internet disruptions and government restrictions of social media platforms.

Driving the news: A letter led by Rep. Tom Malinowski (D-N.J.) calls on the companies to "provide expeditiously and lawfully the tools Iranians need to circumvent government blockages."

Those technologies include cloud and hosting services, messaging platforms and tools, developer and analytics tools, and access to app stores, according to the letter.

The letter was sent to leadership at Google, Amazon, Apple, Meta, Microsoft and Digital Ocean, a cloud infrastructure company. 

It was signed by Reps. Claudia Tenney (R-N.Y.), María Elvira Salazar (R-Fla.), Albio Sires (D-N.J.), Brian Fitzpatrick (R-Penn.), Andy Kim (D-N.J.), Katie Porter (D-Calif.) and Ted Lieu (D-Calif.), and Sens. Robert Menendez (D-N.J.), Marsha Blackburn (R-Tenn.), and Ben Cardin (D-Md.).

What they're saying: Malinowski told Axios he's frustrated with tech companies' lack of action in Iran.

"The ball is really in their court now to deploy technologies that the U.S. government is permitting to ensure Iranians can actually communicate safely and securely," Malinowski said in an interview.

"We're not seeing nearly enough. Iranians are risking their lives, and these big companies seem to be unwilling to risk anything, and that's just wrong."

Catch up quick: Use of anti-online censorship tools has surged in Iran since the September death of Amini, who was in police custody for violating the country's mandatory head-scarf law.

The Treasury Department revised its sanction rules to allow tech companies more latitude in providing online tools and services political dissidents could use to circumvent the government's surveillance and censorship efforts.

Google said in September its Jigsaw subsidiary's open-source Outline tool saw a spike in demand from Iran after the sanctions were revised.

Outline allows third parties to set up secure virtual private networks that are resistant to disruption and censorship efforts.

The other side: Outline has seen 10x growth in users in Iran since the onset of protests, a Google spokesperson told Axios. 

Google also launched location sharing on Maps locally in Iran in late September for anyone locally in Iran to allow people to share where they are. "We are also working on technical ways to ensure continued access to generally available communications tools like Google Meet and our other Internet services," the spokesperson said.

The Iran regime restricted access to Meta's Instagram and WhatsApp in September. Spokesperson Andy Stone said hashtags related to the protests in Iran were used more than 100 million times on Instagram around the world in the days since Amini's death,

Microsoft and Amazon also declined comment. Apple and Digital Ocean did not respond to requests seeking comment.

Exclusive: Lawmakers call on tech companies to aid Iranians

One lawmaker told Axios he's frustrated with tech companies' lack of action in Iran.

A protester holds up a note reading "Woman, Life, Freedom, #MahsaAmini" while marching down a street on October 1, 2022 in Tehran, Iran

A protester holds up a note reading "Woman, Life, Freedom, #MahsaAmini" while marching in Tehran, Iran. Photo: Getty Images.

Iran

Big Tech

A bipartisan group of lawmakers urged Google, Amazon Web Services and other tech companies Thursday to expand access to online tools and services for Iranian protestors after the U.S. Treasury Department <a class="gtmContentClick" data-vars-link-text="relaxed restrictions" data-vars-click-url="https://www.axios.com/2022/09/23/us-treasury-expand-internet-access-iran" data-vars-content-id="d849824b-715f-4def-b251-5de291ba3438" data-vars-headline="Exclusive: Lawmakers call on tech companies to aid Iranians" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2022/09/23/us-treasury-expand-internet-access-iran" target="_self">relaxed restrictions</a> last month.Why it matters: Iranians protesting the death of 22-year-old Mahsa Amini while she was in police custody are trying to evade internet disruptions and government restrictions of social media platforms.

Margaret Harding McGill

Stories

New hot job: State high-speed internet network director

Exclusive: Lawmakers call on tech companies to aid Iranians

Lack of global internet lifelines prompts calls for a U.S. plan

How Democrats' big plans for Big Tech shrank to tiny steps

FCC poised to ban all U.S. sales of new Huawei and ZTE equipment