Daily Digest 1/10/2024 (Franz Anton Beckenbauer)

Benton Institute for Broadband & Society
Table of Contents

Broadband Funding

Fact Sheet: The Future of the Affordable Connectivity Program  |  Read below  |  Press Release  |  Federal Communications Commission
Bidenomics Goes Online: Increasing the Costs of High-Speed Internet  |  Read below  |  Paul Winfree  |  Editorial  |  Economic Policy Innovation Center
Five reasons BEAD alone won’t deliver internet for all  |  Read below  |  Brian Vo  |  Analysis  |  Connect Humanity
Bandwidth Hawk: Public or private for BEAD deployments? Why not both?  |  Read below  |  Steven Ross  |  Op-Ed  |  Broadband Communities

State/Local

Governor Kelly Unveils New Designation for Kansas Cities Improving High-Speed Internet  |  Read below  |  Press Release  |  Kansas Office of the Governor
Benton Foundation
Coloradans at the Heart of State's Digital Access Plan  |  Read below  |  Grace Tepper  |  Analysis  |  Benton Institute for Broadband & Society
Broadband Director: The Challenges are Bigger in Texas  |  Read below  |  Doug Adams  |  telecompetitor
Thousands of locations to get fiber-optic access with completion of rural Pennsylvania network build  |  Read below  |  Brad Randall  |  Broadband Communities Magazine

Ownership

Archtop Fiber Makes Acquisition in New York’s Mid-Hudson Valley  |  Read below  |  Kent Gibbons  |  Next TV
Hewlett Packard Enterprise Strikes $14 Billion Deal to Buy Juniper Networks  |  Wall Street Journal

Labor

How federal, state, and local leaders can leverage the CHIPS and Science Act as a landmark workforce opportunity  |  Brookings

Emergency Communications

5 ways to leverage FirstNet for EMS  |  FirstNet

Security

Cybersecurity: OMB Should Improve Information Security Performance Metrics  |  Government Accountability Office

Satellites

How Astronomers Are Saving Astronomy From Satellites — For Now  |  New York Times

Journalism

Using a Digital Entertainment Tax to Strengthen Local Information Infrastructure in The United States: A Conceptual Exploration  |  Read below  |  Lee Shaker, Antoine Haywood  |  Research  |  Journal of Information Policy

Elections & Media

Elections and Disinformation Are Colliding Like Never Before in 2024  |  New York Times

Artificial Intelligence

Pennsylvania government workers will start using ChatGPT in test program  |  Vox
OpenAI Says New York Times Lawsuit Against It Is ‘Without Merit’  |  New York Times
Actors can start selling AI voice clones to game companies under this new deal  |  Los Angeles Times
Report | Envisioning Cyber Futures with AI  |  Aspen Digital
Microsoft’s OpenAI Investment Could Face EU Probe  |  Wall Street Journal
Opinion | It’s already time to think about an AI tax  |  Financial Times

Platforms/Social Media

Instagram and Facebook Will Stop Treating Teens Like Adults  |  Wall Street Journal
Meta will hide age inappropriate content from teens as government pressure mounts  |  Vox
Facebook and Instagram ran content sexualizing minors next to corporate ads, lawsuit says  |  Guardian, The
A judge has temporarily halted enforcement of an Ohio law limiting kids’ use of social media  |  Associated Press

Government

Eugene Scalia op-ed | Chevron Deference Was Fun While It Lasted  |  Wall Street Journal

Company News

Is Lumen in Trouble?  |  Read below  |  Doug Dawson  |  Analysis  |  CCG Consulting
Windstream Wholesale unveils network intelligence tool that enables users to design their own wavelength routes  |  telecompetitor

Stories From Abroad

Ofcom poaches Big Tech staff in push to enforce new internet curbs  |  Financial Times
Microsoft’s OpenAI Investment Could Face EU Probe  |  Wall Street Journal
Opinion | It’s already time to think about an AI tax  |  Financial Times
Today's Top Stories

Broadband Funding

Fact Sheet: The Future of the Affordable Connectivity Program

Press Release  |  Federal Communications Commission

With less than four months before the projected Affordable Connectivity Program end date and without any immediate additional funding, the Federal Communications Commission expects to begin taking steps to start winding down the program to give households, providers, and other stakeholders sufficient time to prepare. The FCC expects funding to last through April 2024, and run out completely in May 2024. The FCC has released a fact sheet on the ACP which can be viewed here. For a copy of a letter FCC Chairwoman Jessica Rosenworcel sent to congressional leaders outlining the next steps the FCC must take to prepare should Congress fail to fund the program, click here.

Bidenomics Goes Online: Increasing the Costs of High-Speed Internet

Paul Winfree  |  Editorial  |  Economic Policy Innovation Center

One of President Biden’s top economic objectives is “lowering prices” for high-speed internet. Central to the Biden Administration’s plan to accomplish this goal is the Affordable Connectivity Program (ACP). ACP is based on a temporary program initiated during the COVID-19 pandemic to provide a subsidy for eligible low-income households. The subsidy is paid directly to participating broadband service providers. Contrary to the President’s intentions,  ACP enrollment is associated with higher monthly charges for fixed broadband internet. Furthermore, the increase in prices is higher for lower-speed plans, suggesting that broadband service providers are marketing these plans to low-income households and capturing a larger portion of the subsidy. Congress should allow the ACP program to sunset when its existing appropriation runs out within the next few months.  

Five reasons BEAD alone won’t deliver internet for all

Brian Vo  |  Analysis  |  Connect Humanity

In 2024, the first Broadband Equity Access and Deployment (BEAD) Program grants will go out — an ambitious $42 billion in subsidies to build broadband infrastructure to close America’s digital divide. While excited and hopeful, I’m not alone in worrying that there is a significant gap between BEAD’s ambition and what it will likely deliver. BEAD alone is not enough. Here are five reasons why:

  1. Not enough dollars to close the gap
  2. Requirements risk shutting out low-income communities
  3. A seller’s market puts communities in competition
  4. Requirements favor incumbent internet service providers
  5. Private equity is setting the stage for consolidation

We need impact finance and philanthropy to jump in with both feet. Far from being crowded out, BEAD is an urgent call to those who haven’t yet engaged with digital equity to provide the resources, advocacy, and partnerships to make universal internet access a reality.

Bandwidth Hawk: Public or private for BEAD deployments? Why not both?

Steven Ross  |  Op-Ed  |  Broadband Communities

My answer to “who should build broadband networks” has always started with what should be obvious: Usually, the deployer with the lowest cost of capital. But technology and the $42.25 billion Broadband Equity, Access and Deployment (BEAD) Program and other funding mechanisms have warped the equation. What are your community’s options? What are the deployer options? What are the traps? I’ve been talking to many executives, mainly from smaller communities and telephone companies, wondering if they should take the plunge. All want to do right by their customers but most also fear overbuilding by competitors using BEAD money or other funds. Ultimately, there are arguments for and against the large national carriers and the small local deployers. Communities need to be careful and consider the details.

[Steven Ross is Editor at Broadband Communities.]

State/Local

Governor Kelly Unveils New Designation for Kansas Cities Improving High-Speed Internet

Press Release  |  Kansas Office of the Governor

Governor Laura Kelly (D-KS) announced the launch of Kansas Broadband Ready Communities, a new certification from the Kansas Office of Broadband Development (KOBD) for communities working to improve access to high-speed internet. With the Kansas Broadband Ready Communities designation, Kansas communities will be prepared to make their bids for service more competitive and be ready for future grant opportunities. By adopting specific local ordinances ahead of time, communities can ensure more successful and sustainable broadband deployment projects. Communities seeking certification as a Broadband Ready Community must adopt an ordinance that aligns with the program’s minimum requirements, including:

  • Designating a single point of contact
  • Committing to a 30-day review process
  • Ensuring reasonable filing fees, not to exceed what is allowed in state statute
  • Utilizing or transitioning to electronic filing systems
  • Prohibiting discrimination in permitting procedures

Coloradans at the Heart of State's Digital Access Plan

Grace Tepper  |  Analysis  |  Benton Institute for Broadband & Society

The Colorado Office of the Future of Work's Digital Equity Team released the Colorado Digital Access Plan for public comment. The plan includes a vision, mission and values that honor Coloradans and their unique needs and assets. People are at the center of Colorado’s digital inclusion work and in every section of the plan. With this in mind, feedback from the public can be submitted until January 19, 2024. The Digital Equity Team identified six objectives to increase digital equity for all Coloradan communities:

  1. Locally led digital inclusion programs: Colorado communities are empowered to implement digital inclusion programs and initiatives prioritizing their community’s needs.
  2. Availability and affordability of internet subscriptions: All Coloradans can access affordable broadband service at home.
  3. Accessibility and inclusivity of public resources: All Coloradans can access needed online resources.
  4. Digital literacy: All Coloradans have the skills and confidence to navigate digital tools and systems and the support to expand their skills.
  5. Online privacy and cybersecurity: All Coloradans can protect their online information and understand how to prevent security breaches.
  6. Availability and affordability of devices: All Coloradans can access and afford web-enabled devices to accomplish what they need to do online.

Broadband Director: The Challenges are Bigger in Texas

Doug Adams  |  telecompetitor

Texas’ Broadband Development Office Director Greg Conte explains why $3.3 billion in Broadband Equity, Access and Deployment (BEAD) funding might not be as appealing as it sounds. “Receiving $3.3 billion is great, but with that comes a lot of responsibility, said Conte. “There’s a lot of attention on Texas as we have a significant amount of unserved and under-served homes, businesses, community anchor institutions. So, while there’s pressure from our citizens, we’re also under a significant amount of pressure from the NTIA to get the planning out the door so we can start getting money on the streets.” Conte and his team are working hard to ensure processes are streamlined, applicant evaluations are expedited, and funding is ready for shovels to go into the ground in early- to mid-2025. There’s a lot to accomplish as one out of every four Texans is on the wrong side of the digital divide.“It’s important that all Texans have access to affordable internet, so fixed wireless will probably be needed to help to connect people,” explains Conte. “We are following the program, we understand the guidelines, but at the same time we are committed to getting Texans connected.”

Thousands of locations to get fiber-optic access with completion of rural Pennsylvania network build

Brad Randall  |  Broadband Communities Magazine

The first customers in Spring Garden Township (PA) a rural community in York County, are now enjoying access to 100 percent fiber-optic broadband thanks to efforts from Glo Fiber and Shentel. As construction on the network continues, Glo Fiber said residents and businesses will receive advanced notice via mail of their pending internet access options, according to a recent announcement from the company. The fiber-to-the-home network in Spring Garden Township, now available in select neighborhoods, is enabled by Shentel’s 9,300-mile regional fiber network, according to Glo Fiber. Shentel, which is also known as the Shenandoah Telecommunications Company, provides broadband services through fiber-optic and cable networks to customers in the Mid-Atlantic states, according to a summary published by the company. 

Ownership

Archtop Fiber Makes Acquisition in New York’s Mid-Hudson Valley

Kent Gibbons  |  Next TV

Archtop Fiber, a 2022-founded startup focused on rebuilding broadband providers with all-fiber networks in underserved markets, completed its third acquisition in five months, buying Warwick Valley Telephone with plans to upgrade its network operating in New York's Orange County, the Mid-Hudson Valley and northwestern New Jersey. Archtop is rebranding the latest acquisition as WVT Fiber and is “over-lashing fiber onto WVT’s existing lines and making preparations to power up its state-of-the-art XGS-PON network,” the company said.

Journalism

Using a Digital Entertainment Tax to Strengthen Local Information Infrastructure in The United States: A Conceptual Exploration

Lee Shaker, Antoine Haywood  |  Research  |  Journal of Information Policy

As traditional local media decline, how might state and local governments provide support for local information infrastructure? We offer a proposal for states (or communities) to tax digital entertainment and then leverage existing community media centers (CMCs) to facilitate the distribution of the proceeds to local media outlets. Local news and information are vitally important to the civic and democratic health of communities, but their commercial prospects in the United States continue to worsen as digital media displace traditional local media outlets in people’s daily routines. Despite some bipartisan enthusiasm, recent proposals for public funding of local news media face serious political and practical obstacles. Rather than a federal intervention, we call for states and/or cities to levy their own taxes upon digital entertainment goods (like songs purchased from iTunes) and services (like Netflix and Spotify), and then use a portion of the proceeds to support local media, particularly preexisting community media center (CMC) infrastructure. 

Company News

Is Lumen in Trouble?

Doug Dawson  |  Analysis  |  CCG Consulting

In a recurring theme, Lumen finds itself facing financial challenges. At the end of the third quarter of 2023, Lumen CEO Kate Johnson announced some restructuring with current debt holders to extend the due dates of some debt to ‘reduce the noise” around the company’s debt. The company is also eliminating staff to reduce expenses by $300 million annually. Lumen’s revenues dropped over 17 percent compared to 2022, but a large part of that drop comes from its spin-off of copper networks to Brightspeed for $7.5 billion and the sale of its Latin American business to Stonepeak for $2.7 billion. One of the interesting things to watch is how much Lumen will be able to invest in new infrastructure in 2024. In 2023, the company invested something in the range of $3 billion. One of the best ways for Lumen to continue to grow revenues and margins is by building more fiber to enterprises or residential customers. It’s clear that the company is financially distressed, but it still has a lot of solid customers and revenues. Lumen might squeak through the current troubles and be on solid ground again in a few years. Or we might see a sudden bankruptcy. Your guess is as good as mine.

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Benton (www.benton.org) provides the only free, reliable, and non-partisan daily digest that curates and distributes news related to universal broadband, while connecting communications, democracy, and public interest issues. Posted Monday through Friday, this service provides updates on important industry developments, policy issues, and other related news events. While the summaries are factually accurate, their sometimes informal tone may not always represent the tone of the original articles. Headlines are compiled by Kevin Taglang (headlines AT benton DOT org), Grace Tepper (grace AT benton DOT org), and Zoe Walker (zwalker AT benton DOT org) — we welcome your comments.


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Kevin Taglang

Kevin Taglang
Executive Editor, Communications-related Headlines
Benton Institute
for Broadband & Society
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