A couple of decades ago, Multichannel News’ editor, Mark Robichaux, asked me to use a couple of words that would best describe the overall message and mission of my new column. I said straight away, “Mixed Signals.” That’s because I sensed from my earliest days of closely observing TV, back in the 1970s, that it was a business where consumers did not care if the content arrived via satellite, wire, or wireless. Rather, they just wanted a sound and video product that offered value and quality. Indeed, my conviction then was that supplementing a core delivery method with another was THE future. In short, a combination of those delivery methods would work…and/or would eventually be preferred.

To use just one distribution method seemed to be amazingly short-sighted. Yet, even today, that’s what most providers of broadband, broadcast, and pay TV content do.

Nonetheless, as they always tend to, things are changing.

HughesNet’s Gaske

Paul Gaske and I first ran together along a Tennessee river back in the mid 1990s. I will never forget two things: how badly he outran me, and how sweaty it was that day before our first satellite conference together at Opryland.

Recently, Gaske, as the decades-long general manager and executive VP at EchoStar and Germantown, MD-based HughesNet, conducted a video interview, conducted by Light Reading’s Nicole Ferraro. HughesNet champions its moniker as the “largest provider of satellite broadband services in the world.” The interview/podcast is about a new $600 million HughesNet orbiter, capable of delivery speeds of 100 Megabits/second. Near the end of the 14:28-minute query, Gaske concluded that as far as he saw it, the future of HughesNet’s geostationary Earth orbiting (GEO)-delivery of ones and zeros was together with fixed wireless. “Keeping up requires that flexibility of systems,” meaning, clearly, that yet another telecom deliverer had determined its strategy based upon the concept of “Mixed Signals.” In HughesNet’s world, eventually low Earth orbiting (LEOs) satellites are expected to blend into that mix, as well. Fiber already serves to access towers and satellite uplink/downlink gateways, he explains.

To drive home his emphasis, Gaske adds, “Business Enterprise is a perfect example. More and more they cannot, ever, afford to be down.” That means these businesses can easily justify spending on a huge full-time pipe that may include 24/7/365 access to wire, satellite, and wireless, all at the same time. “A well-performing back-up is essential,” he adds.

Gaske further and more broadly summarizes HughesNet’s strategies, rather aptly noting, “The technology at both ends of that fiber has to change constantly for you to be future-proofed. And that’s the next proposition.” 

I find it satisfying that Gaske, like me, also has changed: today he, too, has added regular bicycling to his exercise mix.

AtLink’s Access

Oklahoma City, Oklahoma-based AtLink is a broadband provider with more than 11,000 subscribers. With a current base of 90 employees, it has been focused on subscribers in the lower-middle part of the country for 16 years, since 2005. 

In a recent text exchange, CEO Samual Curtis and I discussed the future of broadband delivery strategies, based upon my sending him a message about the future of LEO-based content distribution. LEOs are a particular interest for Curtis and AtLink.

Curtis: I’m curious of what your take is on this [linked] article about Musk’s Starlink…

Schaeffler: As to your question: smart guys like you will reach out to Musk and Company early. You’ll figure out how to mold your business toward the greater realm of things: as a broadband provider with many pipes, fixed wireless being just one of those (i.e., along with sat, cable, and fiber, and …?). Because at the end of every day, the end customer doesn’t care about how they get the signal or content, they just want the signal and the content! (emphasis supplied).

In a more recent discussion, Curtis reiterated the same goal, but tweaked the aspects of implementation. He explained that AtLink is indeed currently working toward incrementally adding fiber, but is doing so in a most cautious and prudent manner. Some of that has to do with fiber’s far slower return on investment (See, page 19, Figure 8, “Comparative Economics of U.S. Internet Access Solutions,” from The Carmel Group’s 2021 report, the homepage and log-in are found at www.carmelgroup.com). It also, however, has to do with several of the essential positives attributed to fixed wireless, which represents the lion’s share of AtLink’s current broadband distribution system. Fixed wireless’ efficiency of installation and maintenance, plus the industry’s relatively rapid innovation cycle, were highlighted.

Midco’s Match

Sioux Falls, South Dakota-based cable operator Midco purchased 4,000 fixed wireless subscribers and the business of Grand Forks, North Dakota-based InvisiMax in early 2018, which today represents approximately one percent of the joined company’s total 460,000 subscriber base. Fiber-to-the-Household (FTTH) makes up another 5,000 customers. 

Jon Pederson, Midco’s chief technology innovation officer, describes a future growth strategy built around what he calls a “multiaccess fiber network.” At the ends are either fiber, wireless, or coaxial cable. Which gets placed in which locations depends on the geography, the demographics, and the economics. Thus, for Midco, fixed wireless works well in rural areas; fiber or coax are typically used in urban areas. Another factor is whether the subscriber represents a new build or an upgrade. 

“Our choices today are like a Swiss Army knife: I don’t often use the screwdriver, but it’s nice to have it there,” he compares. 

Midco’s current footprint is focused on states ending in OTA, which would mean North and South Dakota, as well as Minnesota, as well as Kansas and Wisconsin. 

Also tweaking his message and strategic philosophy, Pederson supplements, “We have what we call an ‘Edge Out’ strategy. We ask not just if [it] makes sense to put up a tower for a given area. We want to know not just does it work here alone, but is this location on the way to somewhere else? That’s part of a ‘Message of Ubiquity.’”

So the Future Is?

Because the collective and individual demand – and eventually the need – for broadband will continue to grow so very exponentially, not any one delivery form will be capable of single-handedly delivering that value and quality nearly all actual and potential consumers demand. For example, for a fiber network in a given geographical area, often the presence of geographical features and the cost of laying fiber takes that player out of the mix for remote customers in that part of the country. Yet, add an alliance with a low Earth satellite or a tower-to-home-and/or-business fixed wireless alliance, and suddenly that fiber player is back in the mix for that town limited area, broader county area, or more. 

In addition, although many advocates in Washington, DC and elsewhere are arguing that laying fiber is the only future-proof solution, that singular solution is flawed. That is because, as noted above, fiber can be a far from practical delivery form in many parts of a landmass. 

The Carmel Group recently completed its second global report for the U.S. fixed wireless industry trade group, WISPA, referred to above. In that, we championed a form of “Mixed Signals.” That is because we termed and wrote about what we called the “2021 fixed wireless and hybrid fiber-wireless report” (See, the homepage and log-in at www.carmelgroup.com). 

What is important to note, finally, is that in our strong and measured opinion, most future successful content delivery products and services will be based upon a variation of this “Mixed Signals” strategy. For many, fiber will be the trunk service, and wireless will deliver more granularly to the last mile. For others, satellite will be the trunk service, accompanied by both or either fixed wireless and/or cable. In another variation, a cable and fiber base will share access to customers with fixed wireless and LEO satellites. 

Whatever the mix, more flexibility and more revenues will come to those who can successfully (i.e., that value and quality thing) reach the most customers in a given area. That “area” typically includes signal delivery to urban, suburban, and many shades of rural.

Figure out how to get to them all -- or most of them -- and you are ready for the future.

P.S. - What is also fascinatingly strategic is to see where data gleaned by satellites globally will eventually (or even soon) be available to ALL content providers, so that they can better and more readily figure how to use that data to better serve their customers (See, https://news.berkeley.edu/2021/07/20/a-machine-learning-breakthrough-using-satellite-images-to-improve-human-lives/). For example, if you can use that data to determine where to lay roads, you can use it to determine where to string (or lay) fiber or cable. Or where to place towers to reach more subscribers.

Jimmy Schaeffler is chairman and CSO of west-coast-based The Carmel Group, a streaming/broadband, broadcast, and pay TV/video consultancy. He writes about telecommunications, entertainment, and media.

Telecom providers say broadband costs have been going down while value has been increasing during the pandemic, according to a new study just released by USTelecom.

The study comes as Congress tries to hammer out a compromise infrastructure package, one that currently contains billions for broadband on the assumption that if the price is too high or the speed is too slow or competition is lacking, government money might be needed to overbuild faster, cheaper networks.

Drawing on public data, including from the FCC, the latest Broadband Pricing Index (BPI) study shows "continued and substantial price reductions for the most popular and highest-speed broadband internet services," according to USTelecom.

"This research demonstrates the significant and continuing downward trend in broadband prices that is causing affordability as a barrier to broadband adoption to recede," USTelecom said.

Also Read: Kinzinger Bill Would Bar Rate Regulation

That price was decreasing despite unprecedented demand for broadband during the pandemic and increased pricing for consumer goods.

“These findings are relevant to the current debate surrounding broadband affordability," said USTelecom president Jonathan Spalter. "In a year when everything seemed to be going up...the price of broadband went in the opposite direction. This continues a years-long story of declining prices, not to mention accelerating speeds that have unlocked a range of broadband-fueled innovations. The truth is: more Americans have cheaper and flat-out better broadband service choices than they did one year ago.”

The study compared prices in two ways, the prices of the most popular speed tiers and the prices of the highest speed tiers, and found substantial price reductions on both counts, with prices for the most popular tier down 7.5% year over year (YOY)--9.3% when adjusted for inflation--and prices for the highest speed service down 2.3% YOY, 4.2% adjusted for inflation.

At the same time, the cost of goods and services during the pandemic was up 1.9%.

"Today’s US Telecom report is the latest in a spate of flawed and deeply conflicted research from internet service providers on the price of their own service," said Joshua Stager, deputy director of broadband and competition policy at New America’s Open Technology Institute. "It is curious that US Telecom would rely on third-party surveys rather than get the pricing data directly from its ISP members. If internet service is as affordable as US Telecom claims, ISPs could prove it by disclosing their pricing data to the FCC....OTI’s research makes clear that the cost of broadband in the United States is too often opaque, misleading, and unaffordable."

The bill, which is meant to address the shortage of workers to fill the 5G deployment jobs of the future, was first introduced in the last Congress a year ago this month.

A senate version was introduced last week.

Co-sponsoring the House bill were Reps. Tim Walberg (R-Mich.) and Yvette D. Clarke (D-N.Y.).

The bill would boost next-gen broadband buildout jobs by:

1. "Establishing an FCC-led interagency working group that, in consultation with the Department of Labor (DOL) and other federal and non-federal stakeholders, would be tasked with developing recommendations to address the workforce needs of the telecommunications industry.

RELATED: Cell Tower Training Bill Introduced

2. "Requiring the FCC, in consultation with DOL, to issue guidance on how states can address the workforce shortage in the telecommunications industry by identifying all of the federal resources currently available to them that can be used for workforce development efforts.

 3. "Directing the Government Accountability Office to conduct a study to determine the specific number of skilled telecommunications workers that will be required to build and maintain broadband infrastructure in rural areas and the 5G wireless infrastructure needed to support 5G wireless technology."

Also Read: CWA Says There Is No Workforce Shortage

“NATE believes that the provisions outlined in the bipartisan Telecommunications Skilled Workforce Act can serve as a springboard to fostering greater collaboration between the federal government, state workforce boards, higher education and private sector companies to accomplish the ultimate goal of developing a future pipeline of skilled technicians that the country sorely needs to meet its ambitious broadband and 5G deployment objectives,” said Todd Schlekeway, president of The Communications Infrastructure Contractors Association (NATE).

"According to a recent study by Boston Consulting Group, the 5G Economy is poised to contribute $1.5 trillion and 4.5 million jobs to the U.S. economy in the next decade, and this legislation will help ensure that every community across the country has the workforce they need to deploy and benefit from next-generation networks," said CTIA SVP, government affairs Kelly Cole.

“CTIA thanks Representatives Walberg and Clarke for introducing the Telecommunications Skilled Workforce Act." 

The FCC under former chairman Ajit Pai, and over the objections of various local government officials, took various steps to pave the way for swifter and easier deployment of broadband buildouts with the avowed goal of closing the rural digital divide and winning the race to 5G service that will make wireless broadband a stronger competitor to wired.

The association representing broadband buildout contractors and other infrastructure workers wants to make sure they can get COVID-19 vaccines ASAP given the importance of insuring connectivity during a pandemic.

NATE, the Communications Infrastructure Contractors Association, is asking the CDC, the Department of Health and Human Services and the National Governors Association give telecom technicians "frontline essential" status in the hierarchy of vaccinations, which would mean getting the vaccine earlier than their current designation.

That came in letters to all three.

"As you know all too well, the pandemic has dramatically altered the way we live, with so many Americans forced to work, study and play remotely. It would be impossible for people to function – conduct everyday business, bank, learn, utilize telehealth services and simply communicate, all while minimizing exposure – without the wireless and broadband connectivity made possible by telecom technicians," NATE told the CDC. "And without the services they provide, our economy, homeland security and safety would be severely compromised."

It is not asking that those workers be allowed to cut the line in front of or alongside healthcare workers or those in long-term care facilities, it made clear, but that their "essential service workforce" be elevated to Phase 1b along with other "frontline essential" workers.

Currently Phase 1B, according to CDC, includes: "first responders (e.g., firefighters and police officers), corrections officers, food and agricultural workers, U.S. Postal Service workers, manufacturing workers, grocery store workers, public transit workers, and those who work in the education sector (teachers and support staff members) as well as child care workers."

Currently, telecom technicians are in the next phase, 1c ("all other essential workers) along with food service workers, bank tellers, media, and IT workers, among others.

Frontier Communications said it has named Vodafone UK CEO Nick Jeffery as its new CEO. Jeffery will replace Bernie Han, who will step down March 1.

Frontier filed for Chapter 11 protection in April  and has been winding through a restructuring process for months. Its reorganization plan was approved by the U.S. Bankruptcy Court in August and the company said that it has received regulatory approval in 12 states for its restructuring plan. It expects to emerge from Chapter 11 in early 2021.

After Jeffery takes the helm, Han, who joined Frontier in December 2019 from Dish Network, will step down, but will remain a member of the company’s board of directors and will assist in the CEO transition. Jeffery will join the board of directors after the company emerges from Chapter 11.  

“There is still important work to do in unlocking Frontier’s full potential, and I am excited to facilitate the transition and pass the CEO baton to someone with Nick’s outstanding track record,” Han said in a press release. “I want to again thank the entire Frontier team for their support as we see the chapter 11 process through to completion.”

Jeffery was selected after an extensive internal and external search for a new CEO. He has about 30 years of experience, most recently at Vodafone UK, where he helped engineer a turnaround at the British wireless and wireline operator. According to Frontier, during Jeffery’s tenure at Vodafone UK, the unit of Vodafone PLC grew revenue and market share, improved customer service, reduced churn and increased customer and employee satisfaction. Prior to his tenure at Vodafone UK, where he spent eight years, the last four as CEO, Jeffery spent more than a decade at Cable & Wireless, where he led the UK and international markets business units.

In a press release, Robert Schriesheim, chairman of the finance committee of Frontier’s board of directors, said that in addition to Jeffery becoming CEO, John Stratton will become Frontier’s executive chairman after it emerges from Chapter 11. 

“We are now at a point of natural evolution in our transformation and, following a rigorous process, the search committee concluded that Nick is the right CEO to lead Frontier through its next phase of investment and profitable growth,” Schriesheim said in the release. “On behalf of the Finance Committee and Board, I want to thank Bernie for his leadership in executing Frontier’s operational turnaround while managing the unprecedented challenges of the COVID-19 pandemic. Bernie has demonstrated his world-class skills as a CEO operator, managing large-scale complexity with a relentless focus on driving performance and emphasizing accountability. His contributions have helped to reposition Frontier as a stronger, more resilient business, and we appreciate his willingness to guide the CEO transition and remain on the Board through transition.”

Frontier said it is making progress in executing its reorganization plan, including recapitalizing the balance sheet, which upon emergence, will include reducing its debt by about $11 billion and its annual interest expense by about $1 billion. The company also plans to re-focus its efforts to become a fiber-based broadband service provider, and has had five straight quarters of consumer broadband subscriber growth.

“Frontier owns a unique set of assets and maintains a competitive market position,” Jeffery said in the release. “My immediate focus will be on serving our customers as we enhance the network through investments in our existing footprint and in adjacent markets while building operational excellence across the organization. I am committed to delivering world-class customer service. I look forward to speaking and meeting with our employees while working with Bernie, the Board and leadership team to ensure a seamless transition.”

Former Walt Disney Co. streaming chief Kevin Mayer and former chief operating officer Thomas Staggs have teamed up with basketball legend Shaquille O’Neal on a special purpose acquisition company, set on raising $250 million to buy a company in the telecom, media and technology space. 

Forest Road Acquisition Corp. is led by CEO Keith Horn, a long-time financial executive and chief financial officer Salil Mehta, a former Disney EVP. Joining them are Staggs, who will serve as chairman of the SPAC’s strategic advisory committee, Mayer and O’Neal, who will serve as strategic advisers.

Mayer, who was in charge of Disney’s streaming efforts -- including Disney Plus -- left the company in May to become CEO of internet icon TikTok. He resigned from that position in August. Staggs left Disney in 2016 after serving as chief financial officer and chief operating officer of the entertainment giant.

Former Los Angeles Laker and NBA Hall of Famer O’Neal currently serves as an NBA commentator for cable network TNT and is a long-time investor. 

Related: SPACs: The New Final Frontier 

Forest Road is just the latest in what has been an impressive string of SPACs launched this year. According to SPACInsider, 138 SPACs were created in 2020, raising $53.8 billion. Recent SPAC deals include CuriosityStream, which merged with Software Acquisitions Group in August. SPACs led by former MGM chairman Harry Sloan and former CBS Entertainment president Jeff Sagansky have raised more than $3 billion and merged with companies like sports betting giant DraftKings. 

In its prospectus, Forest Road said its team is uniquely positioned to find opportunities in the TMT space.

Other advisers include civil rights activist and Bounce TV co-founder Martin Luther King III; TV and film producer Mark Burg (the Saw franchise and Two and a Half Men); and former entertainment executive and TV and film producer Peter Schlessel. 

“We believe that our team’s distinguished and long-term track record of sourcing, acquiring, and building next-generation media and entertainment platforms, along with other investments and operational experience in consumer-facing industries, will provide us with differentiated consumer insights and sourcing opportunities,” Forest Road said in its prospectus.   

Forest Road added that it sees opportunities in the media space as the industry continues to shaft toward streaming distribution. The rising number of streaming video service providers  and demand for premium content also presents opportunities.

“We believe that media and entertainment is undergoing rapid and aggressive technology-induced change, resulting in new monetization opportunities and secular growth as opportunities to reach consumers expand, new entrants seek to gain market share, and the “old guard” adapts to the evolving needs of today’s consumers,” Forest Road said. “We believe that our team’s experience in building and executing strategies that combine capabilities and expertise in consumer preferences and technology/product development will differentiate our ability to source a successful partner.”

While Forest Road will focus on entertainment targets, another SPAC launched Friday by Atlanta Falcons minority owner Alan Kestenbaum will hone in opportunities in the sports arena including teams and regional sports networks.

Kestenbaum has joined forces with two top sports investors to form Sports Ventures Acquisition Corp. (SVAC) and raise about $200 million.

Among the possible targets listed in the SVAC prospectus, filed with the Securities and Exchange Commission on Oct. 8, are U.S. sports teams, European soccer clubs, rugby, esports and cricket teams. The SPAC also listed regional sports networks, sports media rights and  as possible interests.

In the media and entertainment fields, SVAC will eye film and television production companies,  in the U.S. and private companies in the sports media and entertainment field, including television and film production and be headed by Kestenbaum as CEO. He holds a minority interest in the NFL Atlanta Falcons, and is currently CEO of StelCo Holdings, one of the largest steel companies in Canada. His partners include Inner Circle Sports founder Rob Tilliss and GlassBridge Enterprises CEO Daniel Strauss. 

The sports SPAC field also is getting increasingly crowded. Earlier this year former Goldman Sachs executive and YES Network investor Gerry Cardinale launched RedBall Acquisitions with Oakland A’s EVP of baseball operations Billy Beane, raising about $575 million.  RedBall is reportedly looking to buy an English Premier League team.   Earlier this month, Sports Entertainment Acquisition Corp., created by several former NFL executives, raised about $400 million and are seeking potential targets in the sports, entertainment and technology industries.  

This is the second in a recent series of articles researching and better understanding the role of telecom trade group CEOs. These articles also explore the make-up of the respective organization’s constituency, and how each leader best addresses the needs of those members.

Ilissa Miller is president of NEDAS (formerly the Northeast DAS & Small Cell Association, today just known as Northeast Distributed Antennae System, or NEDAS*). She is also the founding partner of the Independent Data Center Alliance. In her current role, Ms. Miller guides an organization that educates and promotes the joinder of wireless and wireline infrastructure, software, and technologies. The footnote below further describes the organization and its mission.

Future articles and offerings will emanate from the mouths and minds of the CEOs from among the Wireless Internet Service Providers Association (WISPA), the National Cable Telecommunications Associations (NCTA), the National Cable Telecommunications Cooperative (NCTC).

Telecom Trade CEOs: ACA Connects' Matt Polka

Below is the edited transcript of Illisa Miller’s answers to our 20 questions:

Jimmy Schaeffler: What, in bullet points, are NEDAS’ core duties and responsibilities?

Ilissa Miller: NEDAS is a grassroots community of business people, focused on educating the industry about the wireline and wireless convergence. Our responsibilities include the following:

• Education and outreach to the greater industry on the realities of trends.
• Facilitating conversations and opening dialogue about industry challenges.
• Bridging the wireline and wireless communities, so they can work better together.

JS: Within that realm, what are your individual core duties and responsibilities as NEDAS president?

IM: I oversee the strategy, direction, and implementation of our annual programs and events, along with co-chairing the NEDAS Advisory Council, made of up nearly a dozen leading and cutting-edge industry players. In addition to strategy, I am responsible for the NEDAS programming and topics discussed at our events, including conferences, webinars, podcasts and more.

JS: How big is NEDAS, and what are its core staff positions?

IM: We have a terrific team that includes a project manager, marketing manager, social media manager, and sponsorship sales manager. We leverage best-of-breed services from an organization called East of Ellie for event logistics, and digital marketing and public relations from my company, iMiller Public Relations.

JS: How much of your work time is spent on the road versus in the office?

IM: I spend about 50 percent of my time on the road.

JS: What are the places or types of places that you visit the most as part of the job of NEDAS president and CEO?

IM: I attend a lot of different industry conferences and events, from the wireless side to data centers, network operations, telecom, enterprise technology and more. The international travel gives me an opportunity to learn and hear about topical discussions, take part in the conversation and meet with executives to dive deeper into their problems, so we can create programs and offer opportunities that will help people solve their problems.

JS: What would you say, overall, is the most important role for the NEDAS president?

IM: The most important role is ensuring a holistic view of the market is clear, so that we can continue our mission to help companies learn and access information about technologies and solutions that are changing the world. I know that’s a bit pie-in-the-sky. However, this is the information needed to help set the strategy for the organization and its discussion points. I firmly believe that working on an industry is as important as working in an industry, and I take having the opportunity to do both very seriously.

JS: How do you spend the majority of your time?

IM: I spend a lot of time reading, researching, and writing. But most of the time, I am on phone calls or in meetings listening for challenges, and helping to solve problems. It takes interaction with the entire ecosystem to ensure we are on the right track. By keeping pace with, and driving conversations forward, I hope that NEDAS will make the difference in helping to accelerate network deployments, in buildings and out.

JS: Which duties would you deem the most important?

IM: Definitely listening to people. It’s important to understand what is important to the industry, so that we can capture the effects, and gauge how relevant each topic is in the market.

JS: What are your favorite experiences (and memories) of your role as the NEDAS president?

IM: When I first started with NEDAS in May 2013, I was very green on in-building wireless challenges. However, I was keenly aware of the opportunities. With a background in the wholesale telecom industry, very early in my career I had the opportunity to work for Ericsson during the trial period of Bluetooth technology. When I learned about the opportunities with NEDAS, I was truly interested, to help make a difference. The conversations between wireline and wireless were a lot more segregated than they are now, and the industry didn’t understand the importance, yet, of engaging “the other side.” So I set out on a mission to help integrate topics about fiber and in-the-ground network connectivity, and slowly introduced concepts to convey the importance of understanding how the industry all works together. While this still remains my personal mission, we have made tremendous headway. We now have conversations about the edge, connectivity to towers and within enterprise buildings, the importance of data centers and base stations, regulations, public safety challenges and much more. It has been truly rewarding to slowly help the industry listen to and hear each side of the industry more clearly.

JS: What are your least favorite experiences (and memories) as NEDAS president?

IM: Honestly? My least favorite experiences are waiting for our attendees and sponsors to make their decisions and register, or decide on a sponsorship to support our organization. The feedback in the market is so positive about what we’re doing, but the budgets and priorities for spending do not always support those interests. So, asking for the business is my least favorite experience, but a must-do to survive and continue on our mission. So, don’t wait for us to ask. Just do it!

JS: What are a few important bullet-point-type legal, regulatory and policy issues ahead for you and NEDAS?

IM:

• Certainly, data sovereignty across multiple carriers and platforms is a key issue.
• The true implementation of 5G is a hot topic.
• Understanding and identifying parameters for regulations between wireline and wireless communication systems, as we enter deeper in the digital age. I don’t think that will be truly ready for a few years.
• The conversation between municipalities and infrastructure providers needs to be better, to create and enable smart city solutions.
• So, the challenges in having conversations that make sense to one another, and then solving the problem together, is another key area that needs to be addressed from a regulatory, policy, and legal perspective.

JS: Looking back at your many years as NEDAS president, what has been your biggest challenge?

IM: Being the president of NEDAS, as well as the CEO of iMiller Public Relations, and having served as an elected official in the Village where I live, juggling all of these sometimes-divergent interests, that has been a challenge. Identifying people who can work independently, but also knowing how to escalate, and ask for guidance is not an easy thing to do. So hiring and firing are certainly, without a doubt, at least the latter, my least favorite experiences. It’s not just the disappointment that someone didn’t work out. It’s also the cascading results of the fallout on families and livelihoods. I take that very seriously. For someone who is empathetic and caring, setting a hard line for business acumen and expectations is not a natural thing to do. Ensuring the business needs comes first, and identifying the best fit to drive that interest is not easy.

JS: What in your previous life (before NEDAS) was the best, and conversely the worst, event or occurrence in your professional life that taught or impressed a lesson upon you?

IM: The best and worst experience of my career was when my former partner terminated me with no notice, and maliciously took my earnings and interest in our joint company. That was a challenging time, which propelled me to start my own company, and deliver on the promises I had made to my clients. The majority of my clients at the time followed me, which certainly spoke volumes for the work and results I was delivering. Looking back, it was the best thing that could have happened to me. She made me CEO of my own company! But during that time, dealing with the hurt, stolen income, and negativity that surrounds such a situation was challenging to juggle. I had to make a choice to focus on my business and the positivity of the situation, rather than the negativity. Once I realized that was within my control, it was full force forward from there.

JS: Tell “Mixed Signals” about your schooling, focusing on important things you learned.

IM: I went to school initially to become an opera singer, and realized that making a living singing was going to be a challenge. I changed my major to English Writing and Literature, and graduated with a BA, 26 years ago. I think I learned the most important things after school, and in the real world. Highlights for me include being kind and nice to everyone, no matter what position they are in a company; responsiveness and expeditious follow-up make a huge difference; listening and hearing what people are saying is more important than talking; asking questions doesn’t make you stupid—it makes you smarter; having a strategy and an approach for meetings, conferences, events, etc., will help you set goals, and assure success. Those are just a few things that I have learned along the way.

JS: Who in your professional background has impressed you the most?

IM: There are so many people in the industry who impress me every day. It’s hard to specify just one person. But accolades go to the CEOs of the companies who make it look so easy, and to former colleagues of mine who have climbed the ranks to lead billion-dollar companies. The list of impressive people is simply too long to mention, and each one inspires me every single day.

JS: Who in your personal life has impressed you the most?

IM: I know it sounds really cheesy, but my parents. Through the years, just like any family, they faced adversity and challenges, and each time, persevered. The bottom was tough, and the climb just keeps getting harder, but I am blessed to still have them in my life, and admire all that they have done with their lives, and continue to do so.

JS: If you could do your professional life all over again, what would you change?

IM: I am really proud of the career path that I took, and ultimately stumbled upon to get me where I am today, and wouldn’t change a thing. From door-to-door sales and canvassing for the environment, to telephone sales for the NYC Ballet Guild, as a receptionist, recruiter, and executive assistant, I was able to build a career in a specialized industry, and lead a group of people to have conversations that are helping to change the world. I’ve had the pleasure of developing global products, selling data centers, building and marketing an internet exchange, and building not just one but two public relations companies, from the ground up. What could be better -- and more fun -- than that?

*DAS is the acronym meaning Distributed Antennae System. A DAS network of antennas sends and receives cellular signals on a carrier’s licensed frequencies, thereby improving voice and data connectivity. The DAS concept is best represented in a cellular environment, where it offers mass communications and enhanced bandwidth for in-building and large studio/venue amplification and bandwidth. One application for DAS would involve a visitor to a public stadium, seeking to stream the game to a hand-held device. DAS answers the questions: How is that best done, so that that it is done with the best possible video, audio, and data quality, and so that everyone else at the game can do the same?

A bipartisan bill has been introduced to make sure that Chinese telecom ZTE complies with all the conditions of the Trump Administration's deal to lift its previously imposed seven-year ban on export of U.S. components to the company.

ZTE tech includes everything from phones, tablets and smartwatches to mobile hot spots, broadband routers, switchers and servers. 

The ZTE Enforcement Review and Oversight (ZERO) Act would also mandate that "if the Commerce Secretary cannot regularly certify ZTE’s full compliance with the deal and with relevant U.S. export controls and sanctions laws, the denial order’s crippling punishments will be reinstated against ZTE."

The conditions for lifting the ban included what the President characterized as "high level security guarantees, change of management and board, an actual requirement to purchase U.S. parts, and a $1.3 billion fine."

Related: Senate Commerce Passes Ban on ZTE Funding

The initial ban was issued when ZTE was found not to have complied with a U.S. sanction agreement. 

Commerce Department officials had concluded ZTE violated the terms of its settlement agreement with the U.S. over illegally shipping telecom equipment to Iran and North Korea and declared that U.S. companies would be prohibited from exporting technology to ZTE. That move resulted in ZTE essentially shuttering and calling the U.S. move unfair.

Related: Pai Supports U.S. Ban on USF Funds to Chinese Tech Suppliers

The Chinese government then tried to get the President to help ZTE, saying it could cost Chinese Jobs. The President agreed to lift the ban, but said it was with strong conditions, which are the ones the senators want to make sure are complied with this time around. 

Spearheading the legislative effort are Sens. Marco Rubio (R-Fla.) and Chris Van Hollen (D-Md.), joined by Sens. Susan Collins (R-Me.), Mark Warner (D-Va.), James Lankford (R-Okla.) and Elizabeth Warren (D-Mass.).

Rubio was an early and frequent critic of the decision to lift the ban. “With China’s communist government posing the greatest, long-term threat to the United States, we must continue to confront ZTE’s real risks to our economy and national security,” he said. “While it was a mistake to reach a ‘deal’ with ZTE in the first place, this bill will ensure ZTE is finally put out of business if it does not hold up its end of the bargain.”

Sen. Warner was no fan either of what he called the Trump Administration's "cave" to China.

“ZTE has a history of violating U.S. sanctions and misleading the U.S. government," said Warner. "Unfortunately this Administration has shown that it cannot be trusted to defend American interests and punish companies like ZTE that pose a threat to our security. This bipartisan legislation would ensure that if ZTE once again violates trade restrictions or its agreement with the U.S. it will be held accountable in a significant, painful way." Warner is vice chair of the Senate Select Committee on Intelligence.

Credit rating agency Moody’s Investors Service predicts that mergers & acquisitions activity among telecom companies will continue as the industry seeks to offset low revenue potential and intensifying competition with deals.

Already the sector has seen AT&T announce a $108.7 billion deal with Time Warner in October and Century Link make a $34 billion offer for Level 3 Communications. Moody’s sees more deals ahead.

“Market saturation and tough competition have produced a stagnant US telecom market,” Moody’s said in its report. “Yet regulators remain unlikely to approve consolidation within the traditional telecom sector, especially for large incumbents, so they must look elsewhere for growth.”

Moody’s predicts that in the wake of those deals, Verizon Communications will likely accelerate its 5G mobile video strategy either through large scale M&A or partnerships.

“In our view, Verizon’s existing wholesale agreement to provide wireless infrastructure for several large US cable companies could be expanded upon for 5G in a mutually beneficial way,” Moody’s wrote.

In other possible deals, Sprint could make another attempt to merge with T-Mobile, but Moody’s believes regulators will probably squash that transaction again, unless they can prove combining the No. 3 and No. 4 wireless companies provides a public benefit by creating a company that can better compete with Verizon and AT&T.

While there has been great speculation recently regarding what Verizon will do in the M&A space, including a possible pairing with Charter, Moody’s said it doesn’t expect any blockbuster news from the phone company just yet.

“We don’t expect Verizon to pursue a mega-deal like AT&T, but think that Verizon could seek an alternative path to wireless product differentiation by leveraging partnerships to accelerate its 5G strategy,” Moody’s said, adding that it could expand its MVNO agreements with cable operators to include 5G.

“This potentially mutually beneficial arrangement would allow Verizon to leverage the cable operators’ dense backhaul assets in exchange for competitively priced wireless infrastructure,” Moody’s continued. “The cable operators would avoid very costly wireless investments and, at the same time, Verizon would prevent a new retail competitor to its wireless business. It would also place AT&T at a stark competitive disadvantage to Verizon for 5G wireless services.”

On March 31, the Federal Communications Commission (FCC) approved the latest in a string of proposed rulemakings, one which could have a significant impact on the business and operations of communications companies and edge players.

FCC chairman Tom Wheeler’s proposal to establish privacy rules for Internet service providers followed closely on the heels of the FCC’s proposal to “unlock” the cable set-top box (see "PwC’s 3things: Unlocking the Set-Top Box"). All of this comes a year after the controversial Open Internet Order (OIO), which reclassified broadband Internet access as a “telecommunication service” under Title II of the Communications Act, allowing the FCC to impose its “Open Internet” regulations.

While neither of the FCC’s two proposed rules are finalized – and the OIO is still being challenged in court – the fact is that the tide of regulatory-driven change is rising. Understanding and managing legislative and regulatory change is now a daily part of any business and has the attention of the highest levels of nearly every organization. Firms that have the ability to effectively manage – or even embrace – the impact of regulation can gain a competitive advantage.

Lessons Learned From the Wave of Dodd-Frank Regulation

Our experience with financial services firms addressing the rise of global financial reform regulation coming out of the financial crisis (e.g. the Dodd-Frank Act in the U.S.) found that the “winners” in the new regulatory environment were those firms that evolved their approach to proactively manage the impact of regulatory change. As Dodd-Frank’s proposed rules emerged, many banks took a combative stance and adopted a “wait and see” approach to preparing for the impact of the final rules. This approach left many unprepared and in a reactive mode when the rules were finalized. There was no time to think through the strategic or operational impact as they struggled to implement the required changes within the regulatory deadlines.

As banks later accepted the inevitable of the post-crisis regulatory environment and gained experience in addressing new and evolving regulations, a new model arose. Banks continued their lobbying efforts to shape proposed rules, but they also began to game plan the scenarios that might unfold.

Applying the Strategic Approach: The FCC’s Set-Top Box Proposal

The Dodd-Frank lessons learned from the financial services industry can be applied across most other industries facing regulatory-driven change. The FCC’s recent Set-Top Box proposal is a prime example. The FCC believes that the proposed rule meets their obligation under the Communications Act of 1996 to ensure a competitive market for navigation devices for live and video programming. Those opposing the proposal argue that it is unnecessary because the market is already innovating and providing customers with sufficient choices to access their content. The official 30-day comment period for the proposed rule will close on April 22, so, while late, there is still an opportunity to apply a proactive strategic approach (see graphic representation below) to address its potential impact.

At the most basic level, there are three potential outcomes for the proposed rule:

1. The rule is passed largely as proposed, so multichannel video programming distributors (MVPDs) would have to make the three information flows (Service Discovery, Entitlement and Content) available to third party navigation devices according to the rule’s requirements.
2. The rule passes but gets held up in court similar to the OIO, leaving the industry in a limbo state of regulatory uncertainty.
3. The rule does not pass, so the status quo remains.

MVPDs, technology and media companies should consider conducting an impact assessment based on each outcome. Many MVPDs are already innovating the ways in which consumers access their content through apps and other IP-based approaches or are working with third-party device companies to share content. They should be evaluating how their progress on this front could help them address some or all of the proposed rule’s requirements. At a minimum, this exercise would inform their response to, and formal comment on, the proposed rule. It may also provide them with insights that would allow them to benefit from any early adopter advantages.

With a proposed compliance date of two years after the final rule is approved, firms would have time to implement the types of strategic changes that this analysis might identify. The two-year window also makes it likely that the second scenario (legal challenge) would have little impact on a business’ strategy, other than providing an extended window for the more reactive firms to further delay potential changes to their strategy or business model. If the third scenario occurs and the rule does not pass, how would that impact the response of impacted firms? Most agree that the market for accessing video content is advancing rapidly with the evolution of Over-the-Top and digital offerings. With or without a final rule, firms will have to evolve and the analysis performed in preparing for the Set-top Box rule will help them formulate their evolution strategy.

In this era where change comes from all angles (including regulation) and disruption occurs at an accelerating pace, those firms that adopt a proactive approach and embrace regulatory-driven change can create a distinct competitive advantage.

David Sapin is Technology, Information, Communications and Entertainment (TICE) Risk & Regulatory Leader at PwC. Follow him on Twitter.

Fueled by two major deals involving Liberty Global and broadcaster Nexstar Broadcasting Group, media M&A deals were up 69% in the first quarter according to research firm Mergermarket, even as the overall deal climate contracted.

Liberty Global and Vodafone’s $6.97 billion joint venture to combine their Dutch cable assets and Nexstar Broadcasting’s pending $4.6 billion purchase of Media General, helped drive the media segment for the quarter, which finished at 117 deals worth $20.4 billion, a 69% increase from the $12.1 billion last year. The media segment was the only sub-sector that showed gains in the period, according to Mergermarket. In total, about 583 telecom, media and technology deals were made in Q1 worth $85 billion, down 45.5% from the 745 transactions valued at $156 billion last year.

While deal volumes and values across the tech and telecom sectors were down for the year, Mergermarket expects activity to pick up as the growing importance of the Internet of Things, big data, could computing and mobile platforms could drive deals. In the media sector, continued consolidation and the need for scale should also keep transactions high.

“Media in the first half of 2016 could see an increasing trend toward consolidation as the need for cost synergies grows within the sub-sector,” Merger market said in its report.

The day after confirming that M&A talks were underway, Nokia said Wednesday that it has struck a deal to acquire Alcatel-Lucent in a stock deal valued at €15.6 billion (US$16.6 billion), an agreement that should put the companied company on squarer competitive footing against Ericsson and Chinese telecom giant Huawei.

The boards of both sides have approved the terms of the proposed deal, which they expect to close by the first half of 2016. Under those terms, Alcatel-Lucent shareholders will own 33.5% of the fully diluted share capital of the combined company, with Nokia shareholders owning 66.5%.

The combined company will be called Nokia Corporation and be headquartered in Finland, while maintaining a large presence in France. Risto Siilasmaa is planned to serve as chairman, and Rajeev Suri as CEO.

The aim is to generate a complementary portfolio of fixed and mobile broadband gear, IP routing and core networks products and cloud applications and services, and to target a wide geography with “particular strength” in the U.S., China, Europe and Asia-Pacific.

They expect the combined company, which will  have about 114,000 employees, to generate operating cost synergies of about €900 million (US$953 million) annually by 2019. They anticipate combined net sales of €25.9 billion (US$27.4 billion)

The companies talked up the innovation-facing components of the deal, claiming they’ll be able to take combined advantage of Alcatel-Lucent's Bell Labs and Nokia's FutureWorks, as well as Nokia Technologies, which will stay as a separate entity focused on licensing and the incubation of new technologies. 

“We have hugely complementary technologies and the comprehensive portfolio necessary to enable the internet of things and transition to the cloud,” Suri said, in a statement. “Together, we expect to have the scale to lead in every area in which we choose to compete, drive profitable growth, meet the needs of global customers, develop new technologies, build on our successful intellectual property licensing, and create value for our shareholders.

“The global scale and footprint of the new company will reinforce its presence in the United States and China,” added Alcatel-Lucent CEO Michel Combes.

Analysts said there are pros and cons to the proposed marriage.

“When you consider the strengths and weaknesses of Alcatel-Lucent and Nokia and their product portfolios, a merger of the two businesses seems logical,” Ovum said in a statement issued Tuesday about the prospect of a Nokia/Alcatel-Lucent combo. “Nokia is a mobile-only equipment vendor, while Alcatel-Lucent’s strengths are in the fixed network business (especially core network and IP routing). It has long-struggled in the wireless business, and its attempts to become a leading player in LTE have failed. Alcatel-Lucent has also been active in SDN/NFV with CloudBand and Nuage and aggressive with small cells – areas where Nokia is perceived to be lagging behind competition.”

But Ovum said a merger is also rife with risks, as it could “plunge both businesses back into a period of introspection and restructuring” and create “significant duplication in areas such as mobile broadband and small cells.”

On the mobile end, the new company will have a global market share of 35%, behind market-leader Ericsson (40%), but ahead of Huawei's 20%, Reuters said, citing Bernstein Research. Ovum estimates that Nokia and Alcatel Lucent’s combined share of total LTE contracts was at 26% at the end of 2014, behind Huawei (36%) and Ericsson (33%).

J.P. Morgan served as financial advisor to Nokia and delivered a fairness opinion to the Board of Directors of Nokia in connection with the transaction. Skadden, Arps, Slate, Meagher & Flom LLP and Roschier, Attorneys Ltd served as legal advisors. Zaoui & Co is acting as lead M&A advisor to Alcatel-Lucent and delivered a fairness opinion to the Board of Directors of Alcatel-Lucent in connection with the transaction. Sullivan & Cromwell LLP served as legal advisor.

Cyber attacks on communications networks will likely increase in the next 10 years, and a majority of experts polled (61%) by Pew Research Center say those will include a major attack somewhere in the world by 2025 that causes tens of billions of dollars in damage and "widespread harm to a nation’s security and capacity to defend itself and its people?" The other 39% of respodents believe there would be no such attack, with mitigation efforts keeping pace with the bad guys.

That is according to the Pew Research Center's latest "Digital Life in 2025" report, released Wednesday (Oct. 29). It is the latest offering in its ongoing project saluting the 25th anniversary of the creation of the World Wide Web.

The "canvas" -- it is not a randomized survey -- is based on 1,642 respondents, billed as "experts and Internet builders," all of whom were asked for predictions about the future of cybersecurity threats.

“Cyber attacks are already pervasive, and it is trivial even for children to acquire the means to inflict serious damage," said software engineer Robert McGrath who helped develop the World Wide Web. "The United States has already attacked other countries, and other deliberate attacks are suspected. Losses are already in the tens of billions...It is only a matter of time before there is a serious incident, i.e., one that journalists recognize as an event.”

One software tech CEO active in Internet standards development (respondents did not have to provide their names) warned that the major attack could be a high-altitude electromagnetic pulse attack that could do a number on cloud storage systems that would require a long and complex recovery period. On the other side of the major attack issue was telecom engineer Peter McCann. "The potential for destructive terrorist acts carried out through computer networks has been dramatically over-hyped," he said. "To the extent that computers are put in control of life-critical processes, there will be air gaps and safeguards in place that prevent malicious outside instructions from interfering in their operations.”

Darel Preble, founder of the Space Solar Power Institute, suggested concerns about the security of the power grid might be misplaced. "The major damage to our national power grids is not from cyber attacks but from natural causes—squirrels, ants, ice, falling trees, wind, and simple human error," he said.

Hal Varian, chief economist at Google, also sees more danger in mother nature than malicious actors. “There will certainly continue to be cyber attacks around the world. However, I don't think that such attacks will involve losses of tens of billions of dollars," he said. "For that to happen we would have to see systems down for several days. Katrina was the costliest US hurricane and it did about $100 billion of damages. Most hurricanes have been in the $20 billion range. I don't see cyber attacks coming anywhere close to hurricanes in terms of the associated property losses.”

Pew summarized the key themes put forth by both camps.

For those who said there will be a major cyber attack, or attacks, causing widespread harm, the reasoning was:

1) "Internet-connected systems are inviting targets. The Internet is a critical infrastructure for national defense activities, energy resources, banking/finance, transportation, and essential daily-life pursuits for billions of people. The tools already exist to mount cyber attacks now and they will improve in coming years—but countermeasures will improve, too.

2) "Security is generally not the first concern in the design of Internet applications. It seems as if the world will only wake up to these vulnerabilities after catastrophe occurs.

3) "Major cyber attacks have already happened, for instance the Stuxnet worm and attacks in nations where mass opposition to a regime has taken to the streets. Similar or worse attacks are a given."

4) "Cyber attacks are a looming challenge for businesses and individuals. Certain sectors, such as finance and power systems, are the most vulnerable. There are noteworthy divides between the prepared and the unprepared."

For those saying they did not think there would be a major attack, their reasoning was as follows:

1) "There is steady progress in security fixes. Despite the Internet’s vulnerabilities, a distributed network structure will help thwart the worst attacks. Security standards will be upgraded. The good guys will still be winning the cyber security arms race by 2025.

2) "Deterrence works, the threat of retaliation will keep bad actors in check, and some bad actors are satisfied with making only small dents in the system so they can keep mining a preferred vulnerability and not have it closed off.

3) "Hype over cyber attacks is an exaggeration of real dangers fostered by the individuals and organizations that will gain the most from creating an atmosphere of fear."

Dish Network, sitting atop a pile of wireless spectrum and seeking a telecom partner to help build it out, said Wednesday in a Securities and Exchange Commission filing that it has named former Qwest Communications president and chief operating officer Afshin Mohebbi to its board of directors.

Mohebbi’s appointment comes after Dish’s board agreed to increase its size from 10 to 11 members.

Mohebbi is a private investor and advisor to public and private companies and has served as a Senior Advisor to TPG Capital since March 2003. But it is his telecom experience that should be a boon to Dish, which has so far unsuccessfully tried to attract a partner, either by acquisition or otherwise, to help it build out its vast wireless spectrum, currently valued at about $17 billion. A 31-year veteran of the telecom business – he began his career at Pacific Bell in 1983 – Mohebbi served as president and COO of Qwest from April 2001 to December 2002, but has a long history in the telecom business – he was president of worldwide operations at Qwest from July 2000 to April 2001 and was president and COO of the company from 1999 to 2000 prior to its merger with US West. Before joining Qwest, he served as president and managing director of the United Kingdom Markets for British Telecom and was a member of its management board from 1997 to 1999.

While Mohebbi’s appointment is no guarantee that Dish will find a telecom partner, his expertise will help it in its quest. In a statement announcing his appointment Dish noted his “financial and managerial experience in the telecommunications and related industries,” as a reason for his appointment.