Donald Trump is set to return to the White House next year following a remarkable electoral comeback. While his campaign largely sidestepped telecoms policy, the decisions he makes during his second term could profoundly affect the digital economy of the United States and its position in the global technology landscape.
During his first term, Trump’s administration implemented deregulation measures, tax reforms, and adopted a firm stance on China. These moves aimed to bolster domestic industries but also raised concerns about their impact on competition and national security. If his next administration continues in a similar vein, it could influence the daily lives of millions of Americans who depend on reliable telecom services.
One likely development is the rollback of net neutrality, an issue that has seen back-and-forth changes over the past few administrations. Initially introduced under Obama, repealed by Trump, and reinstated by Biden, net neutrality could again be reversed. This would allow telecom companies to prioritise certain types of internet traffic, potentially favouring commercial partners while disadvantaging smaller players and consumers.
Another notable proposal involves imposing substantial tariffs on imported goods, including a 60% levy on Chinese products. While such measures aim to encourage domestic manufacturing, they could increase costs for critical hardware needed for 5G networks and other infrastructure projects. Higher expenses might delay developments, particularly in underserved areas, and lead to increased service charges for customers.
The Federal Communications Commission (FCC) will also play a pivotal role in shaping telecom policy under Trump’s leadership. Brendan Carr, likely to replace current chair Jessica Rosenworcel, has a track record of promoting telecom workforce expansion and telehealth initiatives. However, Carr has opposed regulatory oversight on broadband pricing and customer service practices, which may signal less consumer protection in these areas.
Elon Musk’s influence on telecom policies could grow during Trump’s second term. Starlink, Musk’s satellite broadband service, might see greater inclusion in government-funded projects to expand rural internet access, a departure from current fibre-focused programmes. Trump’s recent remarks suggest a willingness to back Starlink’s initiatives, potentially as a repayment for Musk’s campaign support.
Artificial intelligence could also receive a significant boost, with Trump aiming to position the US as a global leader in the field. Promising to remove what he describes as restrictive AI policies introduced by Biden, Trump’s administration could prioritise rapid innovation while easing regulatory constraints.
In the area of mergers, Trump’s approach is expected to favour less intervention, aligning with a broader Republican preference for business-friendly policies. However, any actions targeting specific companies may be politically driven, particularly against platforms accused of suppressing conservative viewpoints.
Finally, Trump’s tough stance on Chinese firms, particularly Huawei, is likely to continue, reflecting bipartisan support for limiting China’s influence on global telecom infrastructure.
Trump’s return to the presidency may bring sweeping changes to US telecoms policy, from deregulation to tariffs and AI leadership. While some policies could accelerate innovation, others might disrupt services and increase costs. The full impact of these changes will depend on how they are implemented and the response from industries and consumers alike.
Cerillion plc (LON:CER) is a leading provider of billing, charging and customer management systems with more than 20 years’ experience delivering its solutions across a broad range of industries including the telecommunications, finance, utilities and transportation sectors.
