Trump rejects government intervention in 5G wireless networks

President Donald Trump finally sided Friday in a brawl between his advisers on the best way to advance ultra-fast 5G wireless networks in the United States, supporting government officials who want to prevent the federal government to play a bigger role in the industry.

"In the United States, our approach is based on the private sector. The government does not have to spend a lot of money, "Trump told the White House alongside the chairman of the Federal Communications Commission, Ajit Pai.

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"As you've probably heard, we had another opportunity to do that, which would be to invest in the government and lead the government," he said. "We do not want to do that because it will not be as good, almost as fast."

The comments indicated that Trump was standing, at least for the moment, with officials such as Pai and White House economic advisor Larry Kudlow, who wanted to allow telecom giants like AT & T and Verizon to take over. technology development and commercialization initiative. They are arguing with Trump-world figures like Newt Gingrich and 2020 campaign leader Brad Parscale, who favor a heavier model of government that critics equate to "nationalization".

The Gingrich-Parscale faction has put forward a concept that the government would share 5G waves, via a third-party operator, with wireless wholesale companies. Among the main proponents of this approach are Rivada Networks, a politically linked company, backed by Trump ally Peter Thiel, and venture capitalist, who views Karl Rove, a GOP player, both as an investor and as an investor. adviser.

This conversation has scared the wireless industry, government officials and a number of lawmakers on both sides, who wish to stick to the traditional approach, led by l & # 39; industry.

The talks may raise fears that China, which has made aggressive efforts to develop 5G, is beating the United States in the race to develop next-generation networks, which promises ultra-fast internet to fuel innovations ranging from the auto drive cars to precision farming to remote surgery.

As the quarrel between Trump's world flares up – Gingrich called it a "fight to the bone" this week – prominent figures have pleaded their case directly with Trump. These include Pai, the president of the FCC, and AT & T CEO Randall Stephenson, who had separate talks with Trump at the White House last week. Gingrich, former House Speaker and informal adviser at Trump, said that he had also discussed the issue with the president.

Prior to Friday's White House event, Pai announced December 10 as the date for its agency's upcoming 5G wave auction and announced the creation of a $ 20.4 billion fund to support rural broadband over the next decade. The ads, however, appeared to be consistent with previous FCC plans. The 5G auction had already been scheduled for the second half of 2019, and the new fund called "Rural Digital Development Fund" is part of an established program for underserved areas.

"The market, not the government, is best placed to spur innovation and investment in wireless," Pai told reporters on Friday in an appeal. "I think the wholesale network would be the wrong answer for American consumers."

Parscale is a strong supporter of the wholesale network. The Trump campaign has publicly embraced this idea as a way to appeal to rural voters who have long lacked decent internet services, as mobile phone companies are not financially incentivized to offer high-speed coverage outside larger cities . (The campaign subsequently downplayed his split with the White House and said the administration was deciding the policy.)

In recent days, both Ladder and Gingrich attacked AT & T for its $ 85 billion acquisition of Time Warner, Gingrich claiming the company could have spent more on building its network. AT & T has a long history with Trump; The administration has waged an unsuccessful court battle to block the company's Time Warner deal and Trump frequently attacks CNN, a Time Warner unit that is now part of AT & T.

"The old order has failed in rural America, which is the base of the Trump coalition, and has no plan to help rural America before the next elections, which makes perfect sense if you are the owner of CNN, "said Gingrich in an interview Thursday.

In the administration, Kudlow, chairman of Trump's National Economic Council, has been the voice of the traditional model of private sector-led wireless development. He said last week that "what we are doing is the right way".

"I believe that the principles on which we have worked to rebuild the economy will be applied to the telecommunications sector and to the whole question of 5G, 6G and the number of G that we will go through in my lifetime," said Kudlow. "These are free market principles."