Author: Ericson M. Scorsim

Ericson Scorsim. Lawyer and Consultant in Communication Law. Ph.D. in Law from the University of São Paulo (USP). Author of the Communications Law Collection.

The Department of Defense has released guidelines for military applications of 5G technology.[1] Thus, the frequency range 3450-3550 MHz will be used for fixed and mobile radar operations on ships and aircraft platforms.

These defense systems include air defense, missiles and arms control in battlefields, air traffic control, and security. A further 100 (one hundred) MHZ was added, so the U.S. government has a 530 megahertz range in the average frequency range 3450-3980 Mhz to expand its capacity in 5G networks.

The Department of Defense has announced investments in 5G networks on military bases. Military bases were selected for access to the frequency spectrum, fiber optics, and wireless network infrastructure. One of the bases called Lewis-McChord, in Washington, received investments in augmented reality applications and 5G virtual reality military training. The following countries participated in this project for the U.S. government: GBL System Corp. (GBL), AT&T, Oceus Networks, Booz-Allen Hamilton.

The purpose of these 5G applications is to serve military training.  At the naval base in San Diego, California, tests are being held on 5G applications in naval logistics operations related to the transportation of material and equipment between ship and naval base. The following companies are cooperating in this project:  AT&T (4G and 5G network assembly), GE Research (tracking and analysis models), Vectrus Mission Solutions Corporation (Vectrus, inventory management, network security, robotics for cargo movement, and environmental sensors), Deloitte Consulting LLP (Deloitte, robot applications, unmanned air vehicle and drone systems, biometrics, cameras, virtual and augmented reality, inventory control). At another naval base, the Marine Corps Logistics Base in Albany, Georgia, there are 5G vehicle fleet control projects.

The companies participating in this program are: Federated Wireless (offers standards and open solutions for indoor and outdoor testing of 5G equipment), GE research (providing solutions for real-time tracking, modeling, and forecasting analysis), KPMG LLP (automated applications and process scanning for product movement), Scientific Research Corporation (SRC – offers 5G solutions for automated asset management and logistics control, and asset tracking, environmental management, and entry control). At Nellis Air Base in Nevada, there are 5G air command and control, space and cyberspace projects. The goal is to update the command and control architecture in combat situations. As a government partner, AT&T will provide the 5G environment and connectivity support to the airbase operations. There are dynamic spectrum utilization projects at Hill Air Base in Utah, which will enable the Air Force to dynamically share the spectrum of 5G mobile services in the 3.1 to 3.45 GHz frequency range.

The companies partnering with the Department of Defense in this project are: Nokia (testing with open standards, including with antenna systems), General Dynamics Mission Systems (GDMS – coexistence of applications that include tracking radar signals to support access to radio frequency networks), Booz Allen Hamilton (BAH – uses artificial intelligence to enable the coexistence of systems with rapid response to interference), Key Bridge Wireless (adaptations to the commercial frequency spectrum in the range 3.1 to 3.45 GHz with control of interference risk), Shared Spectrum Company (SSC – preservation of 5G communications through radar detection and dynamic frequency spectrum access capability), Ericsson (adaptation of 5G infrastructure to provide machine learning services for 5G capability and frequency spectrum aggregation.

In the words of the U.S. Department of Defense, 5G communications technology is critical to U.S. defense modernization programs and essential to U.S. national security and economic security. Thus, the Department of Defense is focused on experimenting and prototyping the use of dual-use 5G technology to provide high speed and fast response by connecting wireless devices of the military forces.

In short, the hiring by the Department of Defense of private companies serves several purposes: ensuring connectivity in 5G technology to military bases and, thus, the installation of private communications networks on military bases, integration between radar systems and 5G technology, communications command and control systems, control of the risk of frequency interference, dynamic radar frequency sharing and mobile 5G technology, use of artificial intelligence in frequency management, application of machine learning in the coexistence of dual-use 5G technology, control of military assets by technology, logistical control in the transportation of military equipment and weapons, military training with augmented and virtual reality in 5G, among other applications.

 As can be seen, the United States’ defense sector maintains programs to modernize its armed forces, relying on private sector participation. 5G technology is pure innovation, which is the reason for private participation in updating the defense sector.   

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[1] US, Department of Defense: Honorable Dana Deasy, Department of Defense Chief Information Officer: issued the following statement.

Ericson Scorsim. Lawyer and Consultant in Communication Law. Ph.D. in Law from the University of São Paulo (USP). Author of the Communications Law Collection.

The U.S. government has banned the WeChat application in the United States through a presidentialorder (Executive Order on Addressing the Threat Posed by WeChat).

According to the U.S. government, as the application belongs to a Chinese company, it is a threat to national security, foreign policy, and the United States’ economy.

 The basis for this decision Executive Order 13.873 of May 15, 2019, on securing the information and communications technology and services supply chain, as well as the law that granted emergency economic powers to the President.

The application has messaging, social media, and electronic payment functions. It is also claimed that the application captures the personal data of Americans. The presidential decision clearly denies freedom of trade on the grounds of protection of national security.

As for the size of the WeChat platform’s communications, a U.S Court granted an injunction to ensure freedom of expression through the application.[1]However, one of the aspects to be examined relates to the issue of the digital payments market. WeChat is a powerful digital payment application owned by the Chinese company Tencent Holdings Ltd. There are millions of users of this mobile all around the world. Thus, the presidential decision holds a hidden issue related to market competition. By restricting WeChat, what the  U.S. government is in fact doing is protecting U.S. companies in the digital payments market:  Big Techs and credit card companies.  One of the potential competitors in the digital payments market for WeChat is WhatsApp, a Facebook application. The digital payments market moves billions of dollars globally. Also, digital payments are essential for e-commerce.

On this, Facebook recently announced its intention to create a digital currency called Libra, even creating a business association to promote the project. The leading U.S. credit card companies initially decided to participate in the project. Later, they chose to disconnect themselves from the program. Central Banks of several countries are reacting to Big Tech’s initiative in the financial sector. Central Banks perceive the systemic risk when Big Techs enter the financial market, which may disrupt global financial institutions.

One of the reactions to this global movement was the creation of the digital payment system called PIX. It is a digital payment system, organized through a software network that makes financial compensations between the participating economic agents (payer, recipient, and intermediary).

There are numerous advantages in PIX: the time of payments (payments can be made any day, any time, regardless of weekends, holidays, nighttime), reduction of transfer costs, reduction of the risks inherent to cash transfers, among others. The Brazilian Central Bank regulates the subject of PIX. Possibly, this system will produce other innovations in the financial market.  There are challenges, risks, and opportunities with PIX. In short, the U.S. government is applying restrictions to freedom of trade, on the supposed grounds of national security.

In reality, it ends up protecting its Big Techs from the competitiveness of Chinese companies. The international community must discuss this issue of global free trade, e-commerce, and digital payments to avoid abusive government practices.  It must be noted that PIX is a first step in democratizing access to the financial market, as well as in financial inclusion.

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[1]Scorsim, Ericson. United States Courts guarantee freedom of expression through the WeChat application. Portal: www.direitodacomunicacao. September 25, 2020

Ericson Scorsim. Lawyer and Consultant in Communication Law, with a focus on Technologies, Media, and Telecommunications. PhD in Law from the University of São Paulo (USP).

Mercosur and the European Union entered into a proposed trade agreement with impact on various economic activities. The aim is to promote trade freedom of services and business establishments. But the agreement still must be approved internally by the legislature of each of the participating countries. In any case, it is an important step in bringing the countries of South America, which are part of Mercosur, closer to Europe. Regarding the telecommunications industry, there are several provisions that authorize service providers from any of the countries that have signed the agreement to establish, build, acquire, assign, operate or provide telecommunications networks or services. Broadcasting services, as well as services providing editorial content are excluded from the commercial agreement.

According to the agreement, the telecommunications regulatory authorities must publish their regulatory acts in a clear manner, to simplify their understanding. In addition, regulatory procedures must be impartial, with respect to all market participants. Licenses to provide telecommunications services should be granted, where possible, following a simplified procedure. The reasons for denying a license to provide telecommunications services must be known. Countries should adopt practices to protect competition and repress abuses by the dominant power. Also, the parties must ensure that the major telecommunications providers guarantee the right of access to other competitors in a reasonable and non-discriminatory manner. Any telecommunications service provider has the right to negotiate interconnection with other providers. For scarce resources such as radio spectrum, public allocation policies should be objective, timely, transparent, and non-discriminatory.

The frequency allocation plan must be publicly available. Each country has the right to define what the universal services are. On the other hand, the Parties must ensure the confidentiality of telecommunications and data traffic on public telecommunications networks to avoid arbitrary or unjustifiable discrimination in the trade of such services. Furthermore, the parties must ensure transparency and reasonable prices for international roaming services, to promote trade growth between countries and consumer welfare. The agreement also provides for freedom of trade.

However, it establishes some technical barriers to trade. Thus, Annex I contains safety rules regarding electronic and electrical equipment. Also, on the electromagnetic compatibility of equipment using radiocommunication. In addition, there are standards on energy efficiency certificates of products. And the restriction of toxic substances in electronic and electrical equipment. Moreover, it holds procedures for the declaration of technical conformity of the supplier of products, based on their responsibility before a certification body. And, still, there is the possibility of international mutual recognition through a validation system. In this regard, a Mercosur country may request technical recognition based on its legislation and regulations in bilateral agreements, including memorandum of understanding. In being recognized as valid the declaration of technical conformity, according to European Union’s procedure, the report of the test carried out by the advisory bodies located in the Mercosur countries, the document is valid before the European Union and its technical regulations.  In addition to these subjects, the agreement provides for rules on e-commerce. For the time being, the agreement between Mercosur and the European Union is still under negotiation.

The parliaments of the respective countries integrating the two regional blocs must adopt the procedures for approval of the aforementioned international treaty and incorporate it into their internal law. It should be noted that the European Union and the United States, in 1999, already signed an agreement on mutual recognition of telecommunications equipment and electromagnetic compatibility of products.[1] Also, the United States and the United Kingdom signed an agreement for mutual recognition of telecommunications equipment in 2011.[2] In short, this agreement between Mercosur and the European Union is an important step towards the international trade of telecommunications products and services, as well as the affirmation of international law related to the mutual recognition of declarations of technical conformity for telecommunications equipment, harmonizing international rules that impact telecommunications services.  Even more so now in the context of 5G technology and IoT devices, this international regulatory standardization is essential.  As mentioned, the integration of the international agreement depends on ratification by the parliaments of the countries that make up the two regional blocs, something that will take a few years.

[1] Agreement on mutual recognition between the European Community and the United States of America, which encompasses: Telecommunication equipment, electromagnetic compatibility (EMC), electrical safety, recreational craft, pharmaceutical good manufacturing practices e medical devices.

[2]See: Agreement on mutual recognition between The United States of America and The United Kingdom of Great Britain and Northern Ireland, covering: telecommunications equipment, electromagnetic compatibility (EMC0) and pharmaceutical good manufacturing practices (GMPS0.

Ericson Scorsim. Lawyer and Consultant in Communication Law, focusing on Technologies, Internet, Media and Telecommunications.  PhD in Law from the University of São Paulo (USP). Author of the Communications Law Collection.

The US government has announced that it will ban the apps TikTok and WeChat. According to the government, applications originating from Chinese companies pose risks to U.S. national security, as they allow for the collection of sensitive data from U.S citizens and businesses.  According to the Executive Order issued by President Donald Trump under the International Emergency Economic Power Act and National Emergencies Act, and Executive Order 13.873 (securing the information and communications technology and services supply chain), WeChat, an application provided by Chinese company WeChat, captures immense amounts of U.S. data, which poses a national security risk.[1] In turn, the Executive Order on TikTok, a mobile application provided by the Chinese company Bytedance, adopts the same reasoning, and mentions that the video sharing application also collects huge amounts of data, including geolocation data and internet browsing history, representing a threat to the national security of the United States.[2] 

There is a risk that these apps are collecting personal data and tracking the location of federal government employees and contractors to obtain personal information for purposes of blackmail, extortion and/or corporate espionage. This national security policy is aligned with the following U.S. State Department strategies: i) Clean Carrier – the assurance of disconnection of Chinese telecommunications companies from the U.S. telecommunications networks; ii) Clean Store – the removal of untrustworthy applications of Chinese origin from U.S. company application stores given privacy risks, content censorship, and dissemination of advertising and misinformation; iii) Clean Apps – preventing Chinese mobile phone manufacturers from installing or making applications available in their application store, so U.S. companies must remove applications from the Huawei application store; iv) Clean Cloud – preventing sensitive U.S. citizen and business confidential information related to their intellectual property from being stored and processed in cloud computing systems related to adversary countries, such as Alibaba, Baidu, China Mobile, China Telecom, and Tencent; v) Clean Cable – ensuring that submarine cable networks connecting the United States to other countries are not subject to the collection of intelligence signals by the Chinese government, in relation to the global Internet, and this guarantee should be extended to other countries impacted by submarine cable networks. As noted, the targets of the U.S. foreign policy strategy toward China are: telecommunications network infrastructure, application stores, applications themselves, cloud computing infrastructure, and submarine cable networks.

The U.S. government is studying measures to order Internet service providers to block TikTok and WeChat applications. So, for example, Google may be forced to prevent the installation of Chinese applications on its Android software.  Also, Amazon may be required to remove Chinese applications from its store. Another possible measure is the obligation to divest TikTok and WeChat operations in the United States, thus US citizens and companies could be forced to divest themselves of investment interests in Chinese companies.

The measures are adopted in the context of the dispute between the United States and China for global leadership. The United States sees China as a threat to its global leadership, especially in the face of 5G technology, led by Chinese company Huawei.

[1] Executive Order on addressing the threat posed by WeChat, August 6, 2020.

[2] Executive order on addressing the threat posed by TikTok, August, 6, 2020.