Bill Overview
Title: NETWORKS Act
Description: This bill requires the President to block and prohibit significant transactions and interests in property of a foreign individual or entity that (1) produces fifth- or future-generation telecommunications technology; and (2) engages in economic or industrial espionage, or other related illicit activities, involving trade secrets or proprietary information owned by a U.S. individual or entity.
Sponsors: Rep. Gallagher, Mike [R-WI-8]
Target Audience
Population: Individuals affected by the NETWORKS Act
Estimated Size: 500000
- The NETWORKS Act targets foreign individuals or entities that produce advanced telecommunications technology and engage in espionage, particularly against the U.S.
- The bill impacts foreign telecommunications firms and suppliers involved in producing 5G and future technologies that may engage in industrial espionage.
- U.S. telecommunications companies and firms that develop proprietary technologies could be affected positively by having less risk of trade secret theft.
- Other entities in countries with such foreign telecommunications firms might be influenced by restricted business operations due to sanctions.
- Global strategic partnerships involving telecommunications could be impacted due to restrictions based on the Act.
Reasoning
- This policy primarily targets foreign entities but can indirectly influence various stakeholders in the U.S. The immediate beneficiaries are American tech companies concerned with espionage. However, there may also be a trickle effect on consumers and the workforce in the telecommunications sector.
- The budget is limited, so direct financial implications for the general U.S. population might be minimal. The larger effects could include market dynamics changes, shifts in trade relationships, and adjustments in consumer pricing and product availability.
- We need to consider a diversified sample from tech industry employees, consumers, policy enforcers, and general public members who might not be directly impacted.
Simulated Interviews
Software Engineer (San Francisco, CA)
Age: 34 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- I believe this policy can secure my company's intellectual property better.
- There might be some disruption in the products we work with temporarily, but it's vital for long-term security.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 4 |
Telecommunications Executive (Houston, TX)
Age: 52 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 7.0 years
Commonness: 2/20
Statement of Opinion:
- This act can potentially harm our supply chain if not managed well.
- I approve of protection against espionage but am worried about trade tensions.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 5 |
Policy Analyst (New York, NY)
Age: 28 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- This policy is a necessary step to protect national interests.
- Implementation needs careful monitoring to avoid excessive economic repercussions.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 9 | 8 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 5 |
Mid-level Manager (Des Moines, IA)
Age: 43 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 5/20
Statement of Opinion:
- It might cause us some logistical headaches in the short term.
- However, from a security standpoint, I see the need for such measures.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 4 |
| Year 10 | 6 | 4 |
| Year 20 | 6 | 3 |
Retired (Miami, FL)
Age: 67 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 4/20
Statement of Opinion:
- I am concerned about the potential overreach of policy on personal freedoms.
- Understanding past experiences, reliability on foreign tech should decrease.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 4 |
Small Business Owner (Los Angeles, CA)
Age: 39 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- There could be supply shortages affecting my business operations.
- In the long run, however, it could stabilize the market and prices.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 5 |
Digital Marketing Specialist (Chicago, IL)
Age: 29 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 6/20
Statement of Opinion:
- Marketing might be tough at first with changes in the telecom landscape, but long-term outlook could be positive.
- Hoping the U.S. will strengthen its digital sovereignty.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 5 |
Information Systems Manager (Seattle, WA)
Age: 60 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 6.0 years
Commonness: 5/20
Statement of Opinion:
- This policy feels like it will enhance data security concerns at universities.
- Implementation efficiency will be key to success without disruption.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 5 |
Federal Employee (Dallas, TX)
Age: 48 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 8.0 years
Commonness: 3/20
Statement of Opinion:
- This act aligns with our national security strategy.
- Looking forward to closing loopholes and securing our information.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 5 |
Consumer (Portland, OR)
Age: 30 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 10/20
Statement of Opinion:
- As a consumer, initially, I might face higher costs or delays in products.
- Overall, it's worth it for safer, more reliable tech options.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 5 |
Cost Estimates
Year 1: $500000000 (Low: $400000000, High: $600000000)
Year 2: $515000000 (Low: $415000000, High: $615000000)
Year 3: $530450000 (Low: $430450000, High: $630450000)
Year 5: $561940500 (Low: $461940500, High: $661940500)
Year 10: $619815245 (Low: $519815245, High: $719815245)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- Potential trade tensions or diplomatic repercussions with countries where targeted foreign firms are based.
- Impacts on the storage and management of sensitive data for affected foreign telecom companies, and the U.S.'s strategic positioning.
- Possible increased costs for U.S. tech firms sourcing components and technology domestically.