The broadband industry’s four main lobbying groups are joining forces to stop California’s state net neutrality law from taking effect.
On Wednesday, mobile-industry lobbyist the CTIA; USTelecom, which lobbies for the telecommunications industry; and the two lobbying organizations for the cable industry, NCTA and the American Cable Association, jointly filed a lawsuit in federal court against the state of California to block its new law.
Collectively, the groups represent almost every broadband provider in the country, including mobile operators like T-Mobile and Sprint as well as cable and telecom companies such as AT&T, Comcast, Charter, Verizon, Frontier and CenturyLink.
The suit, filed in the US District Court for the Eastern District of California, asserts that California’s net neutrality protections are illegal because they’re pre-empted by the Federal Communications Commission, which rolled back federal net neutrality rules earlier this year.
The trade groups’ suit calls California’s law a “classic example of unconstitutional state regulation,” and it’s asking the court to block the rules from taking effect on Jan. 1.
This is the second lawsuit filed against California since Gov. Jerry Brown. The Trump administration’s Department of Justice is also suing California and seeking a preliminary injunction to stop the law from going into effect.
At issue is whether California and other states have the right to pass net neutrality laws, which they claim are necessary to protect their citizens. As part of its roll-back of federal net neutrality rules in June, the FCC included a provision in its order that pre-empted states from creating their own regulations. The DOJ and the broadband industry argue it would be too complicated for internet service providers to follow different net neutrality rules in 50 states.
US Attorney General Jeff Sessions said California’s law violated the Commerce Clause of the US Constitution.
“Under the Constitution, states do not regulate interstate commerce — the federal government does,” he said in a statement.
But net neutrality supporters argue that since the FCC has refused to regulate these services and because the agency actually abdicated its authority for such regulation to the Federal Trade Commission, states can impose their own rules for services delivered in their states.
California’s law, which prohibits internet service providers from slowing down or blocking access to websites or charging companies like Netflix extra to deliver their services faster, is based on Obama-era net neutrality protections that the Republican-led FCC rolled back earlier this year. But California’s law goes further, also outlawing some zero-rating offers, such as AT&T’s offer, which exempts its own streaming services from its wireless customers’ data caps. The law also applies the net neutrality rules to so-called “interconnection” deals between network operators, something the FCC’s 2015 rules didn’t explicitly do.
The legislation has been opposed by the broadband industry, which considers it too restrictive.
California is just one of several states looking to enact its own rules governing an open internet, after the FCC, under Pai, rolled back the Obama-era net neutrality rules in June. States such as Washington have pushed through a net neutrality law, while others are considering doing so.
Meanwhile, attorneys general of 22 states and the District of Columbia have already filed a brief to a US Appeals Court to reverse the FCC’s move. Companies like Firefox publisher Mozilla and trade groups also filed arguments.
Net neutrality, the principle that all internet traffic is treated fairly, has been one of the hottest topics of debate over the past several years. Consumers, tech companies and Democrats have pushed for stricter regulations prohibiting the prioritization of traffic, which resulted in the rules put in place by the previous FCC. But the Trump-era FCC has agreed with ISPs and Republicans who fear the regulations are onerous and hurt capital investment.
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Samsung to invest $115 billion in its foundry business by 2030
Samsung is earmarking $9.5 billion a year for Samsung LSI and Samsung Foundry.
Samsung Electronics is one of the largest semiconductor players around, and the manufacturer is investing $115 billion (133 trillion won) over the next 12 years to take on Qualcomm and Intel. Samsung says its goal is to become the world leader in semiconductors and logic chips, and the company will invest $9.5 billion a year from now through 2030.
Samsung will invest $63.4 billion (73 trillion won) toward domestic R&D — where it is looking to add 15,000 jobs to “bolster its technological prowess” — and spend $52 billion (60 trillion won) toward production facilities that will make the logic chips. Samsung has long been the dominant player in the memory business, but with that market shrinking the South Korean manufacturer will be looking to diversify.
While the $115 billion seems like a staggering amount at first, it’s in line with what Samsung has been spending in recent years. Just last year alone Samsung invested over $15 billion in R&D, and Intel also spent over $10 billion toward developing new products.
LG V50 ThinQ 5G launch in South Korea delayed
The delay is due to LG wanting to further optimize the Qualcomm Snapdragon 855 chipset and Qualcomm X50 5G modem inside of the V50. LG also said it’s working with Qualcomm and South Korean carriers to improve 5G service and phone interoperability.
LG V50 ThinQ 5G price & release date: What we know so far (it’s not much)
LG didn’t say when the V50 will be available in South Korea. Android Authority reached out to LG for comment on a new release date and whether the delayed launch in South Korea will affect the U.S. launch, but did not receive a response by press time.
The delay comes at a bad time for LG, which saw rival Samsung launch its first 5G smartphone April 5 in South Korea. LG likely had hoped to use the Galaxy S10 5G’s launch momentum for its own 5G smartphone, but now we don’t know when the V50 will debut.
That said, LG might have dodged a very big bullet by delaying the V50’s launch. Business Koreareported last week that Galaxy S10 5G owners have struggled with poor 5G connectivity and an inability to switch to 4G LTE. Samsung pushed out an update that supposedly addressed the issues, but the update didn’t help much.
Samsung snubs Apple on 5G modem supply, leaving few good options for the 2020 iPhones
Thanks to the patent war with Qualcomm reaching a crescendo mode, last year Apple’s iPhones shipped exclusively with “Intel inside” as far as cellular connectivity is concerned. That, however, is not an ideal solution for Apple, as Intel’s modems are behind the curve when it comes to features, so it has been shopping around for other options.
Apple could go with Samsung, Huawei or MediaTek’s 5G modems, but each of those choices comes with severe drawbacks. Samsung will likely charge an arm and a leg for its 5G brainchild, America’s homeland security institutions would balk at Huawei’s involvement due to geopolitical considerations, while MediaTek simply isn’t up to par yet.
SAMSUNG’S 5G MODEM OPTION IS OUT FOR APPLE, BUT WHOSE IS IN?
Surprise, surprise, even those unpalatable options have now become harder to pick from, as Korean media is reporting today that Samsung has declined Apple’s advances for its Exynos 5100 5G modem. Not only does the company need its production for the Galaxy S10 5G that will be shipping tomorrow in Korea but it could very well need it for the Note 10, too.
Samsung, it turns out, is simply unable to churn out 5G modems in the quality and quantity that Apple would demand, or so it claims. According to one “electronics industry official” there:
Apple inquired about the supply of 5G modem chip from Samsung Electronics System LSI division. However, we know that Samsung Electronics System LSI answered that the supply volume of its smartphone 5G modem chip is insufficient.
There you have it – unless Apple resolves the bad blood between the companies, Qualcomm is likely to sit its 5G push out, so the last remaining option is for Apple to go it alone, either by acquiring Intel’s wireless modem assets or starting from scratch (highly unlikely). All of these options mean either a lot of extra expenses for Apple in order to deliver a 5G iPhone in 2020, or falling behind the competition by launching one that is a cycle or two behind.
Last summer, insiders claimed that they have seen internal Intel communication regarding a memo that Apple sent Chipzilla. In it, Apple warns that it might no longer need Intel’s wireless modem designs, including the 5G ones, starting with the 2020 iPhone crop. Intel reportedly halted research in this area and might disband the whole 5G modem undertaking, as Apple was its largest and perhaps sole customer.
5G gets going and Apple’s 2020 iPhones can’t go FOMO
South Korea just launched its nationwide 5G network, with the Galaxy S10 5G being its poster child. Upon the phone’s release there tomorrow, Korea will have all of its largest networks offering 5G plans. In fact, Korea Telecom announced three 5G price tiers. Among those, there is a “Super Plan” that offers truly unlimited 5G data without speed caps, and this one will go for the equivalent of $70, a pretty good price no matter how you slice it. In fact, the Super 5G Plan is somewhat cheaper than the current unlimited 4G LTE plans in Korea, so the 5G future seems bright, and we are expecting more and more 5G handsets to enter the fray this year, especially towards the tail end of 2019.
A true nationwide shift to 5G networks is not happening this year in the US anyway, so iPhone users won’t be missing all that much until then. Next year, however, most of the flagship phones of the spring season will probably have some sort of 5G connectivity support, be it with a Qualcomm, Samsung or Huawei modem, and Apple could feel the pinch in that regard. If in the fall of 2020 Apple hasn’t solved its 5G modem supply options, however, there might be image and perception consequences. As virtually all of Apple’s 5G avenues have dried up and will incur extra expenses, patching thing up with Qualcomm would be a smart solution so we’ll keep our eyes on the patent lawsuit as it moves through the court system.
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