Monday, January 29, 2018

Trump Mobile: The Only Choice

It's no secret that China, Russia, and the US are constantly trying to hack each other's networks to get data and gather intelligence, and that's both easier and more difficult as more of the world goes to mobile internet as their access of choice.  As the big mobile carriers start building the latest generation of mobile infrastructure, it appears the Trump regime wants the country connected to it quickly and securely...and that apparently means nationalizing new 5G cell tower networks.

Trump national security officials are considering an unprecedented federal takeover of a portion of the nation’s mobile network to guard against China, according to sensitive documents obtained by Axios.

Why it matters: We’ve got our hands on a PowerPoint deck and a memo — both produced by a senior National Security Council official — which were presented recently to senior officials at other agencies in the Trump administration.

The main points: The documents say America needs a centralized nationwide 5G network within three years. There'll be a fierce debate inside the Trump administration — and an outcry from the industry — over the next 6-8 months over how such a network is built and paid for.

Two options laid out by the documents:

The U.S. government pays for and builds the single network — which would be an unprecedented nationalization of a historically private infrastructure.

An alternative plan where wireless providers build their own 5G networks that compete with one another — though the document says the downside is it could take longer and cost more. It argues that one of the “pros” of that plan is that it would cause “less commercial disruption” to the wireless industry than the government building a network.
Between the lines: A source familiar with the documents' drafting says Option 2 is really no option at all: a single centralized network is what's required to protect America against China and other bad actors.

The source said the internal White House debate will be over whether the U.S. government owns and builds the network or whether the carriers bind together in a consortium to build the network, an idea that would require them to put aside their business models to serve the country's greater good.

Why it matters: Option 1 would lead to federal control of a part of the economy that today is largely controlled by private wireless providers. In the memo, the Trump administration likens it to "the 21st century equivalent of the Eisenhower National Highway System" and says it would create a “new paradigm” for the wireless industry by the end of Trump's current term.

But, but, but: The proposal to nationalize a 5G network also only covers one part of the airwaves; there’d be other spaces where private companies could build.

The PowerPoint presentation says that the U.S. has to build superfast 5G wireless technology quickly because “China has achieved a dominant position in the manufacture and operation of network infrastructure,” and “China is the dominant malicious actor in the Information Domain.” To illustrate the current state of U.S. wireless networks, the PowerPoint uses a picture of a medieval walled city, compared to a future represented by a photo of lower Manhattan.

The best way to do this, the memo argues, is for the government to build a network itself. It would then rent access to carriers like AT&T, Verizon and T-Mobile. (A source familiar with the document's drafting told Axios this is an "old" draft and a newer version is neutral about whether the U.S. government should build and own it.)

This seems like the kind of thing the Trump regime wanted to slip into Trump's infrastructure bill without too many people noticing.  We already know the Trump regime is virulently against net neutrality principles, so what happens when the government controls your access to your mobile device, access that will only become more and more important in the future?

The first tell here that this doesn't pass the smell test is that the Trump regime wants to nationalize 5G to save us from China, not Russia.  The second is that other leaked details from the Trump infrastructure plan make it clear that the regime wants to take the Eisenhower Highway System that they reference in the 5G nationalization plan and turn it into the American Toll Road Turnpike Alliance.

President Donald Trump won the White House promising a $1 trillion, 10-year blueprint to rebuild America — an initiative he said would create millions of jobs while making the nation’s highways, bridges, railroad and airports “second to none.”

But the infrastructure plan he's poised to pitch in Tuesday’s State of the Union is already drawing comparisons to the The Hunger Games.

Instead of the grand, New Deal-style public works program that Trump's eye-popping price tag implies, Democratic lawmakers and mayors fear the plan would set up a vicious, zero-sum scramble for a relatively meager amount of federal cash — while forcing cities and states to scrounge up more of their own money, bringing a surge of privately financed toll roads, and shredding regulations in the name of building projects faster.

The federal share of the decade-long program would be $200 billion, a sum Trump himself concedes is "not a large amount." The White House contends it would lure a far larger pool of state, local and private money off the sidelines, steering as much as $1.8 trillion to needs as diverse as highways, rural broadband service, drinking water systems and veterans hospitals. (Maybe even commercial spaceflight, one recently leaked draft suggests.)

The Trumpies want to force states to cough up 80-90% of the trillion or two it will take to rebuild America's road, bridge, water, power and rail infrastructure and essentially privatize it...but they want to nationalize the cellular network?

None of this sounds cool.

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