Analysis

The House Communications and Technology Subcommittee in the 118th Congress has new leadership and members. Below we offer a brief look at the broadband priorities for this key panel.

The Federal Communications Commission recently opened a docket, at the prompting of federal legislation, that asks for examples of digital discrimination. The big cable companies and telecoms are all going to swear they don’t discriminate against anybody for any reason, and every argument they make will be pure bosh. If people decide to respond to this FCC docket, we’ll see more evidence of discrimination based on income. We might even get some smoking gun evidence that some of the discrimination comes from corporate bias based on race and other factors.

In 2023, broadband spending could taper off because of high-interest rates and economic challenges, but buildout expansions remain high. A few factors are driving this. Demand for household internet keeps growing. Leichtman Research Group (LRG) found that 90 percent of US households now get internet service, up from 84 percent in 2017.

It was worth the wait. The third round of the US Department of Agriculture's ReConnect Loan and Grant Program closed in 2022, after awarding $759 million in rural broadband grants and loans to 49 deployers, mostly small local exchange carriers (LECs). The average cost of passing each home, farm, other business, or school was just over $4,500, compared to $4,100 in 2019 and almost $6,000 in 2020. All awardees in this round, and almost all in previous rounds, told USDA they were deploying fiber to the premises.

If you zoom into Pine Bluff, Arkansas, on the Federal Communication Commission’s broadband map, it doesn’t take long to realize something doesn’t look right.

The proportion of US urban populations declined slightly from 2010 to 2020, while the proportion of US rural populations increased during the same period. Yet while the narrative is good news, the changes seem to be less about people moving in or out of rural and urban places and more about how the Census Bureau defines “rural.” Specifically, the Census Bureau:

A lot of smaller broadband providers are currently expanding their service footprints. They are often using grant funding to add more service areas and customers, while others are expanding using the more traditional route of borrowing to build new networks. But not all small providers are expanding, or are only expanding in small increments. The reasons why they aren't expanding:

• Fear of Being Able to Compete
• Fear of New Debt
• Staff Can’t Handle Change
• Reluctance to Change Habits
• Lack of Creativity/Innovation

One of the oldest standing legislative committees in the U.S. Senate, the Committee on Commerce, Science, and Transportation has jurisdiction over communications, interstate commerce, science, and technology policy. In the Senate, Commerce is the main committee concerned with universal broadband. The committee convened this week for the first time in the 118th Congress.

While expanding broadband access throughout Texas is a priority for Governor Greg Abbott (R-TX), part of his More Prosperous Texas initiative, the governor's record on connectivity is mixed. Texas faces two simultaneous challenges. First, there remain barriers to access which are particularly prevalent in rural areas of the state. Second, even where broadband is available, there remains a substantial portion of Texans who have not adopted or subscribed to broadband in their homes.

One of the most striking developments of the last decade has been the rapid “digitalization” of work—and with it, an urgent demand for skill-building. Digitalization is the infusion of digital skills (though not necessarily higher-end software coding) into the texture of almost every job in the economy. And it has inordinate power to both empower workers or divide them. That’s because gaps in access to digital skills engender disparate access to the nation’s best-paying, most desirable jobs and industries.