A New Administration and a New Direction for Networks

Given the nation’s collective unease leading up to the presidential election and the subsequent election of one of history’s most polarizing U.S. presidents, it is no surprise that uncertainty surrounds business decisions as networks seek to find their footing on shifting social, political, and economic terrain. Adding to the air of confusion are building controversies over some of the incoming administration’s cabinet picks and a premature, failed government funding showdown.

In this contentious atmosphere, incoming FCC chairman Brendan Carr is also facing some controversy over his free speech initiatives and his role in Project 2025. However, Carr has served as an FCC Commissioner since 2017, having been nominated by both President Trump and President Biden, and confirmed unanimously by the Senate three times. Bipartisan support would seem to suggest that he is not as much of a polarizing figure - nor prone to disruptive or abrupt actions - as some of the other cabinet nominees.

"Brendan Carr stepping in as FCC Chairman should be seen as a positive development for network operators. While much of the media hype has been centered on his free speech initiatives, his track record suggests a strong focus on cutting through red tape to speed up broadband and 5G rollouts, especially in rural and underserved areas,” said Mukesh Gupta, CPO of networking company Infoblox.

Related:Will the FCC’s $9 Billion Rural 5G Fund Survive?

Will Carr Prevail at the FCC?

While many see Carr’s actions to be predictable and, therefore, easier to plan for, some are concerned that Carr may be overridden by an administration that appears to be set to strip agencies of much of their power and autonomy.

Two of President-elect Donald Trump's picks to head the new "Department of Government Efficiency," Elon Musk and Vivek Ramaswamy, have publicly announced plans to cut government spending through "mass reductions," with Ramaswamy going so far as to say that some governmental agencies may be “deleted outright.”

While it’s nearly impossible for any federal agency to be "deleted" without a massive congressional battle, which the Trump administration is unlikely to win, Trump might succeed in outright ignoring or challenging the 1974 Impoundment Control Act. If that happens, he could starve agencies of Congressional-approved federal funding, which could cripple them to the point of failure. And that may happen given Trump’s focus on surrounding himself with loyalists.

Considering these big picture factors, for some, the question becomes not so much whether Carr’s leadership is beneficial to network owners and operators but whether he is likely to become merely a figurehead or a yes man. For example, the Communication Workers of America (CWA) expressed concern over Carr’s and Musk’s friendship and whether Carr is willing or able to maintain the commission’s independence.

Related:FCC’s Universal Service Fund Fee Ruled Illegal Tax, in Blow to Telecom-Access-for-All

The DOGE Factor

The question of whether Carr would stand against or simply execute any Trump or Musk initiatives for the sector is of keen interest. After all, Musk has a stake in the game by virtue of his ownership of Starlink. The potential conflict of interest is worrisome within and outside of the sector. Only time can answer these questions with any degree of certainty. Until then, networks would be prudent to stay vigilant regarding changing political winds. The smart money is on having plans in place to adapt to any given shift in direction.

As to what direction Carr will likely take the FCC, should he steer the FCC independently, several are a given if his past positions and statements are any indication. Primarily, those are expected to be:

Related:Broadband is On the Ballot

(* This point may be moot by the time the new administration is in place. Last week, a federal appeals court struck down the Biden Administration’s net neutrality efforts.)

A Final Word on the FCC Under Carr

In a nutshell, “Given both Carr's past and the FCC's recent focus on cybersecurity, three main priorities will arise: funding for rural broadband expansion and 5G deployment, reduced barriers for network buildouts, and securing critical network infrastructure,” said Trevor Francis, CEO of the connectivity orchestration platform, 46 Labs.

Network operators largely see a reduction in regulations and other barriers as a positive and welcome development. But that may prove to be a mixed bag in the end. For example, the boost to cybersecurity requirements could eat any cost relief that networks get from reductions in other areas of regulation. Certainly, cybersecurity is a necessity, but it’s rarely cheap. Shortcuts can be even more costly, however,

“While deregulation may offer more flexibility, operators need to be cautious about maintaining high standards of service quality and transparency. Prioritizing regulatory compliance alongside innovation is imperative to avoid potential backlash or future regulatory corrections,” said Francis.

As to networks eyeing potential new government contracts, there’s one area you might want to build on first.

“Carr's focus on workforce development presents a significant opportunity. Network operators should consider investing in training programs and partnerships that align with these initiatives to not only enhance their workforce but also position them favorably for potential government support or contracts,” said Francis.