The U.S. should restrict use of drones and funding for state-owned firms trying to undermine national security, Senate Republicans wrote the Transportation Department and FAA Wednesday. Sens. Marsha Blackburn, Tennessee; Marco Rubio and Rick Scott, Florida; John Cornyn, Texas; and Tom Cotton, Arkansas, demanded immediate restrictions on the equipment, in response to Chinese threats. “American taxpayer dollars should not fund state-controlled or state-owned firms that seek to undermine American national security and economic competitiveness,” they wrote Transportation Secretary Elaine Chao and FAA Administrator Stephen Dickson. DOT didn’t comment.

Liberty Global ended discussions on combining its cable subsidiary UPC Switzerland and Swiss telco Sunrise Communications after disagreements between Sunrise's board and its largest shareholder, Liberty said Monday. It said it's focusing now on UPC's turnaround plan.

Intel acquired Habana Labs, an Israel-based developer of programmable deep learning accelerators for data centers for about $2 billion, Intel said Monday (see personals section). It said the acquisition strengthens Intel's artificial intelligence portfolio and will help energize its efforts in AI silicon, a market it predicts will top $25 billion by 2024.

Tech hailed a “Phase One” U.S.-China trade deal averting 15 percent List 4B tariffs from taking effect Sunday and halving 15 percent List 4A duties in place since Sept. 1. Several expressed frustration 25 percent tariffs remain on the first three tranches worth $250 billion. There's anxiety a comprehensive Phase Two trade agreement may be months away. "We will begin negotiations on the Phase Two Deal immediately, rather than waiting until after the 2020 Election," tweeted President Donald Trump. "This is an amazing deal for all." Phase One is “an historic and enforceable agreement” that “requires structural reforms and other changes to China’s economic and trade regime in the areas of intellectual property, technology transfer,” among others, said the Office of the U.S. Trade Representative. Formal “signing” of Phase One awaits “legal review, translations, authentication and other necessary procedures,” Vice Commerce Minister Wang Shouwen told a Beijing news conference Friday. The U.S. and China held in-depth discussions on boosting IP safeguards, said ministry officials. Phase One addresses the protection of trade secrets and combating pirated and counterfeit goods over e-commerce platforms, they said. It also features measures for enhancing IP enforcement, they said. It's “welcome news,” said CTA CEO Gary Shapiro. It addresses “critical tech priorities,” such as IP protections and forced technology transfer, he said. Postponing the List 4B tariffs on smartphones, laptops and tablets “may temporarily protect American consumers from price increases,” he said. The Information Technology Industry Council is “pleased” Phase One “begins to roll back harmful tariffs, increases IP and tech transfer protections for American companies, further opens China’s financial market, and stabilizes this critical trade relationship,” said CEO Jason Oxman. “We encourage both countries to use this positive momentum to finalize a broader agreement.” It's "needed relief for the semiconductor industry by reducing uncertainty, easing some harmful tariffs, and not adding more,” said Semiconductor Industry Association CEO John Neuffer. “We urge both sides to avoid further escalations that could undo this progress.” The U.S. and China should use Phase One as “a springboard to a more comprehensive deal that more effectively protects intellectual property,” he said. The Telecommunications Industry Association thinks Phase One is “a first step toward addressing systematic issues,” said CEO David Stehlin. "TIA hopes that faithful implementation of this Phase One agreement will build trust and encourage China to address the unfair trading practices that limit market access for global technology firms operating in China.”

There were 4 million 5G subscriber connections worldwide in Q3, a 166 percent sequential increase, 5G Americas said Thursday. The period, added 250 million LTE connections, 5G Americas said. The group counts 50 commercial 5G networks, which adhere to 3rd Generation Partnership Project standards, expected to rise to 67 by year's end. “Early adopters in 5G technology are testing the waters to see what their devices can do on the new technology,” said President Chris Pearson: “They’re taking advantage of new capabilities now being offered by several 5G networks that have come online over the past quarter. We expect to see a strong ramp up in 2020 as more devices become available and coverage expands.”

Proposed Commerce Department Bureau of Industry and Security rules on emerging technologies may not be published until early next year, another sign of delay that has plagued the rules since their November 2018 announcement. Commerce has three emerging technology rule proposals in “various stages of clearance,” Hillary Hess, BIS Regulatory Policy Division director, told Tuesday's Regulations and Procedures Technical Advisory Committee meeting. The agency hopes to publish one proposal before the end of the year, Hess said, urging committee members take any prediction with “at least a handful of salt.” The process has been “very fraught,” she said. “There’s not a lot of year left, but it’s still theoretically possible.” Also at the meeting, restrictions on Huawei were discussed (see 1912110039).

World Trade Organization members extended a moratorium on customs duties on data transfers. Renewed at every opportunity since 1998, it remains at least until the WTO’s conference in June. Members also agreed Tuesday “to continue work under the existing 1998 work programme on e-commerce in the beginning part of 2020,” the body said. The International Chamber of Commerce said the actions underscore the continued importance of the body, despite no functioning dispute settlement mechanism due to appellate vacancies. "The shutdown of the Appellate Body is, without doubt, a blow -- but we shouldn’t slip into exaggerated claims about the imminent death of the WTO. ... WTO committees will continue the essential daily work of resolving trade frictions, while new rule making -- in areas such as services, investment and e-commerce -- is advancing at a rate not seen for over a decade,” said ICC Secretary General John Denton.

FCC Chairman Ajit Pai and his Canadian counterpart, Ian Scott, chair of the Canadian Radio-television and Telecommunications Commission, completed their first official cross-border call using new authentication technology for combating illegal caller ID spoofing, said the FCC Monday. “Spoofed, scam robocalls are an international problem,” said Pai and Scott. Americans and Canadians “are being bombarded by these calls, which are too often used to defraud consumers and target some of our most vulnerable communities.” The FCC and CRTC “are committed to combating robocalls by aggressively attacking the use of caller ID spoofing.”

Huawei petitioned the 5th U.S. Circuit Court of Appeals to overturn the FCC banning rural eligible telecom carriers from using USF programs to buy equipment that could come from the Chinese firm, the company said Thursday. Last month, the FCC voted, for national security, to ban Huawei and ZTE equipment on networks bought with USF dollars (see 1911220033). The FCC declined comment now.

Global semiconductor sales were $36.6 billion in October, a 2.9 percent increase sequentially from September but down 13.1 percent from October 2018, reported the Semiconductor Industry Association Tuesday. It’s projecting 2019 sales will decrease 12.8 percent before rising 5.9 percent in 2020 and 6.3 percent in 2021. Though the market “slumped somewhat” in 2019, “the recent trend is more positive, with month-to-month sales increasing in October for the fourth consecutive month,” said SIA.