Trump is reportedly pressuring the Pentagon to give no-bid 5G spectrum contract to GOP-linked firm

CNN reports on 5G spectrum issues
(Image credit: Screenshot/Twitter/CNN)

President Trump has been ramping up pressure on the Defense Department to give what amounts to a no-bid contract for its valuable mid-band wireless spectrum to Rivada Networks, a company whose prominent investors include Fox News regular Karl Rove and Peter Thiel, Trump's biggest supporter in Silicon Valley, CNN reports. The 350 megahertz of spectrum, ideal for the nascent 5G market, is worth at least $10 billion. The pressure campaign to hand the contract to Rivada is getting pushback from the Pentagon and Federal Communications Commission, CNN says.

One senior administration official told CNN that giving the deal to Rivada would amount to "the biggest handoff of economic power to a single entity in history," and without the usual vetting of how it would affect national security. "Something is really fishy about this," a senior administration official said. In a research paper published Oct. 7, telecom industry analyst Craig Moffett said "the whole story smacks of cronyism at best and reeks of 'the swamp' at worst."

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Peter Weber, The Week US

Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.