Analysis

The US telecommunications market has significantly evolved since Congress last overhauled the Communications Act more than a quarter century ago. But the Federal Communication Commission’s universal service distribution policies – though periodically tweaked – are still rooted in a framework designed to support incumbent telephone companies. However, the Congress and the FCC now have before them an opportunity to reimagine and reinvent universal service policy for the future.

There are several states already estimating that the Broadband Equity, Access, and Deployment (BEAD) grant funding is not going to be enough money to reach all of their unserved and underserved areas. California, New Mexico, and Minnesota have estimated that BEAD will fall short. By the time the dust settles there will likely be more states. I’m not surprised by this. Just since the BEAD grant program was enacted by the Infrastructure Investment and Job Act (IIJA) in November 2021, there have been some significant cost increases for building broadband networks.

Digital inclusion took on new urgency in the U.S. when the COVID-19 pandemic thrust the issue into the spotlight, forcing schools, governments and businesses to expedite the move online. While broadband access is necessary to fully participate in society and the economy, it’s not available or affordable for many. The costs of having inadequate access—or no internet at all—can be high, limiting opportunities for success, educational achievement, positive health outcomes, social inclusion and civic engagement, according to the Digital Equity Act of 2021.

In July, the West Virginia Department of Economic Development (WVDED) released the state's Draft Digital Equity Plan for public comment, asking stakeholders to weigh in on WVDED's strategy for bridging the digital divide. West Virginia’s Digital Equity Plan is a five-year, action-oriented roadmap for the WVDED—in collaboration with statewide partners—to ensure that every West Virginian can participate in today's increasingly digitally connected society.

Congress and the Federal Communications Commission must act swiftly and purposefully to ensure that low-income households continue to have sustainably affordable access to communications services through a fully funded low-income program that is structured to effectively close the affordability component of the digital divide while preserving program integrity. National Lifeline Association (NaLA) offers the following recommendations and observations:

The Federal Communications Commission recently implemented an increase in the monthly Affordable Connectivity Program subsidy in qualifying high-cost areas from $30 to $75. The reason for the change is easy to understand – this was codified in the Infrastructure Investment and Jobs Act (IIJA) legislation.

As of 2017, there were approximately 18.2 million veterans in the United States, constituting approximately 7.3 percent of the adult U.S. population. An analysis of 2016 American Community Survey data found that U.S. veterans lagged in internet access when compared with non-veterans. More recently, the lack of access to the internet became more visible when the U.S. Department of Veterans Affairs (VA) tried to employ telemedicine and other technology-enabled approaches to serving veterans.

Comcast and Charter intend to upgrade cable networks to DOCSIS 4.0 to be able to better compete against fiber networks. The goal is to be able to offer faster download speeds and drastically improve upload speeds to level the playing field with fiber in terms of advertised speeds. It’s anybody’s guess if these upgrades will make cable broadband equivalent to fiber in consumers’ eyes. From a marketing perspective, there are plenty of people who see no difference between symmetrical gigabit broadband offered by a cable company or a fiber overbuilder.

At the end of July 2023, the Federal Communications Commission proposed a $20 million penalty against Q Link and Hello Mobile for not complying with the Customer Propriety Network Information (CPNI). The FCC concluded that the two companies violated the CPNI rules when they failed to protect confidential user data. The companies both had security flaws in their apps that allowed outside access to customer account information. There are stringent privacy rules in place at the FCC for voice providers, but nothing similar for broadband.

Researchers at the Humana Foundation and AARP’s Older Adults Technology Services (OATS) found that nearly half of older Americans live with technological barriers. And nearly 22 million American seniors do not have wireline broadband access at home. There are poignant correlations between digital disengagement and race, disability, health status, educational attainment, immigration status, rural residence, and, of course, income.