Daily Digest 4/3/2024 (Barbara Rush)

Benton Institute for Broadband & Society
Table of Contents

Broadband Funding

Biden administration asks Republicans to extend popular broadband discount program  |  Read below  |  Skylar Rispens  |  State Scoop
The clock is ticking for ACP—can it be saved?  |  Read below  |  Masha Abarinova  |  Fierce
Chairwoman Rosenworcel's Update to Members of Congress Regarding the Affordable Connectivity Program  |  Read below  |  FCC Chairwoman Jessica Rosenworcel  |  Letter  |  Federal Communications Commission
Without federal internet subsidies, state efforts to offer low-cost broadband could be impacted  |  Read below  |  Kery Murakami  |  Route Fifty
End of internet subsidies for low-income households threatens access to telehealth  |  Read below  |  Sarah Jane Tribble  |  Minnesota Public Radio

Adoption

The role of Video on Demand in stimulating broadband adoption  |  Read below  |  Raul Katz, Juan Jung, Fernando Callorda  |  Research  |  Telecommunications Policy

Broadband Service

Internet Service Provider Cost and Speed Survey Report  |  Read below  |  Bobbi Dempsey  |  Research  |  US News & World Report
Introducing Speedtest Insights  |  Ookla

State/Local

California's Digital Equity Plan Accepted  |  Summary at Benton.org  |  Press Release  |  National Telecommunications and Information Administration
Texas’ Digital Equity Plan Accepted  |  Summary at Benton.org  |  Press Release  |  National Telecommunications and Information Administration
Ohio’s Digital Equity Plan Accepted  |  Summary at Benton.org  |  Press Release  |  National Telecommunications and Information Administration
District of Columbia’s Digital Equity Plan Accepted  |  Summary at Benton.org  |  Press Release  |  National Telecommunications and Information Administration
Missouri's Digital Equity Plan Accepted  |  Read below  |  Press Release  |  National Telecommunications and Information Administration
Nebraska's Digital Equity Plan Accepted  |  Summary at Benton.org  |  Press Release  |  National Telecommunications and Information Administration
Oklahoma’s Digital Equity Plan Accepted  |  Read below  |  Press Release  |  National Telecommunications and Information Administration
Vermont’s Digital Equity Plan Accepted  |  Read below  |  Press Release  |  National Telecommunications and Information Administration
Minnesota Broadband Director Builds on State’s Rural Funding Heritage  |  Read below  |  Doug Adams  |  telecompetitor
FCC, USAC, Connecticut Department of Social Services Use New Matching Program for Lifeline, ACP Eligibility  |  Federal Communications Commission

Net Neutrality

Refuting Bogus Broadband Lobby Claims that Title II Harms Investment in Networks  |  Read below  |  Derek Turner, Yanni Chen, Matt Wood  |  Analysis  |  Free Press

Wireless/Spectrum

FCC Seeks Comment on Petition for Rulemaking to Expand Wireless Broadband in 900 MHz Band  |  Read below  |  Public Notice  |  Federal Communications Commission

Artificial Intelligence

Building an Ecosystem for AI Accountability  |  Read below  |  Assistant Secretary for Communications and Information Alan Davidson  |  Speech  |  National Telecommunications and Information Administration
Top musicians among hundreds warning against replacing human artists with AI  |  Axios

Labor

Inside Amazon’s bid to stall a union drive  |  Guardian, The

Transportation

"Put the Phone Away or Pay" campaign targets distracted driving  |  Axios

Content

New York Times to soon offer most articles via automated voice  |  Axios

Industry News

Public and private fiber operators tap asset backed security  |  Read below  |  Linda Hardesty  |  Fierce

Stories From Abroad

A first look at Europe’s alternative iPhone app stores  |  Vox
Regulators Force Another Microsoft Split  |  Microsoft
Today's Top Stories

Biden administration asks Republicans to extend popular broadband discount program

Skylar Rispens  |  State Scoop

President Joe Biden’s administration called on Republicans in Congress to extend funding for the Federal Communications Commission’s Affordable Connectivity Program (ACP), a consumer broadband rebate program used by more than 23 million households. The the $14.2 billion ACP was signed into law in November 2021 and began accepting enrollments at the end of that year. The Federal Communications Commission is now winding down the program and said that though April will be the last month recipients will receive full benefits, ACP households may receive some percentage of their usual discounts in May. President Biden has been calling on Congress since October 2023 to pass legislation that would extend ACP through the end of 2024. He also included funding for the program in his 2025 budget request.

The clock is ticking for ACP—can it be saved?

Masha Abarinova  |  Fierce

April is the last fully funded month for the Affordable Connectivity Program (ACP), and the forecast for its future is looking grim. On March 23, the Senate Appropriations Committee approved Congress’ final, fiscal year 2024 spending package, worth a whopping $1.2 trillion. The kicker? The over-1000-page legislation contained no mention of additional funding for the ACP. And the numbers aren’t looking pretty. The Federal Communications Commission (FCC) has appropriated a total of around $17 billion for the ACP and its predecessor the Emergency Broadband Benefit program. As of February 15, just under $2.5 billion remained in the ACP funding pot. The FCC froze new ACP enrollments on February 8. As of that date, approximately 23.3 million households were enrolled in the program, including around 329,000 Tribal households. Joe Kane, director of broadband and spectrum policy at ITIF, said that while there’s still bipartisan support to keep ACP running, “it doesn't seem to be a top priority for those with the power to move forward.”

Chairwoman Rosenworcel's Update to Members of Congress Regarding the Affordable Connectivity Program

FCC Chairwoman Jessica Rosenworcel  |  Letter  |  Federal Communications Commission

I am writing to provide an update on the Affordable Connectivity Program (ACP), which is on the brink of shutting down due to lack of funding.  This program is the largest broadband affordability effort in our Nation’s history.  Today, more than 23 million households nationwide count on it to get online and stay online, including vulnerable seniors, veterans, school-aged children, and residents of rural and Tribal communities.  Unless Congress acts, April will be the final month that those who count on the ACP—one in six households across the country—will receive the full benefit toward the cost of their broadband service.... To illustrate the extent of the service loss that may result from the end of this program, the attachment to this letter provides updated data on the number of enrolled ACP households in each state, territory, and congressional district.  Based on estimates of state-by-state participation rates, more than three-quarters of the states, along with the District of Columbia and Puerto Rico, have ACP participation rates among eligible households of 30 percent or higher.... When Congress asked the Commission to set up the ACP to further this goal, we did so in record time.  The result has been the most consequential broadband affordability effort in our history.  I want you to know that the agency remains ready to keep this program running, should Congress provide additional funding.  We have come too far to allow this successful effort to promote internet access for all to end.  

Without federal internet subsidies, state efforts to offer low-cost broadband could be impacted

Kery Murakami  |  Route Fifty

According to state broadband officials in Michigan, Vermont and Pennsylvania, the termination of the Affordable Connectivity Program (ACP) could not only impact the 23 million households on the program, but also those who live in areas where broadband is being built out. In Michigan, for instance, the state wants to require broadband companies receiving grants under the Broadband Equity, Access and Deployment (BEAD) program to charge lower-income people no more than $30 a month. Had Congress not ended the program, broadband being created through the BEAD program would have essentially been free for low-income households participating in the ACP. Eric Frederick, Michigan’s chief connectivity officer, noted in an interview with Route Fifty that about a third of the state’s households who now have internet access rely on that ACP. Without the subsidy, he estimated that a quarter or a third of the households in the areas where broadband service is being built out under BEAD may struggle to afford it. “Without the subsidy, I know we're gonna lose folks,” Frederick said. “It's not going to be affordable.” Similarly, Christine Hallquist, executive director of the Vermont Community Broadband Board, noted that 14% of households with internet service in her state relied on the subsidy. She agreed that some households in the areas where broadband is being built will struggle to afford it without the assistance.

End of internet subsidies for low-income households threatens access to telehealth

Sarah Jane Tribble  |  Minnesota Public Radio

The importance of high-speed internet was seared into the American psyche by scenes of children sitting in parking lots and outside fast-food restaurants to attend school online during the COVID-19 pandemic. During that same period, health care providers and patients like Cindy Westman say being connected also became a vital part of today’s health care delivery system. Affordable Connectivity Program (ACP) participant Westman said her internet connection has become so important to her access to health care she would sell “anything that I own” to stay connected. Westman lives in the small town of Eureka, Illinois, and has been diagnosed with genetic and immune system disorders. Her 12-year-old daughter has cerebral palsy and autism. She steered the $30 saved on her internet through the ACP toward taking care of her daughter, paying for things such as driving 30 minutes west to Peoria, Illinois, for two physical therapy appointments each week. And with an internet connection, Westman can access online medical records, and whenever possible, she uses telehealth appointments to avoid the hour-plus drive to specialty care.

 

The role of Video on Demand in stimulating broadband adoption

Raul Katz, Juan Jung, Fernando Callorda  |  Research  |  Telecommunications Policy

In this paper we study the role of Video on Demand services (VOD) as drivers of broadband adoption. We developed a worldwide database of VOD services launch by country since 2012 (including Netflix, Amazon Prime, Apple TV+, Disney+, Paramount+, and HBO Max) and explored their contribution as contributors to broadband adoption during the period. Our results confirm that VOD services have been a key contributor to the increase of broadband connectivity, also helping to narrow down the digital divide especially in developing nations. In addition, VOD service offers have been associated with the gradual increase in the purchasing of broadband higher speed plans. Finally, there is a significant and positive increase in consumer surplus associated with the launch of VOD offers. This evidence points to the impact of VOD services on the digital economy as a stimulus for consumer acquisition of broadband services and therefore as a contributor to the revenues of broadband service providers.

Internet Service Provider Cost and Speed Survey Report

Bobbi Dempsey  |  Research  |  US News & World Report

In late 2023, U.S. News & World Report surveyed 2,500 Americans about their internet bill costs over time, their internet service reliability, and how satisfied they are with the internet service they get for their money. Not surprisingly, the cost of internet service – like that of many other basic expenses, including groceries and utilities – has been rising, and the price users pay tends to increase over time. According to our latest survey, the average current cost of a U.S. internet bill is $89, compared to an average bill of $77 when the customer first signed up for internet service. That upward cost trend was also apparent in our late 2023 survey report, as more than half of respondents (53%) said they were originally paying between $20 and $60 per month for internet service when they initially signed up with their current internet provider. New Jersey residents tend to get hit the hardest by internet bills. According to our newest survey, customers in that state have the highest average monthly internet bill at $126. They also have the highest average bill increase, with the current price about $28 more than their price at signup. On the flip side, customers in Montana have the lowest average internet bill at $70 per month. Those in North Dakota have the lowest average bill increase – in fact, their average bill actually dropped by $4 from signup until now.

Missouri's Digital Equity Plan Accepted

The Department of Commerce’s National Telecommunications and Information Administration (NTIA) has accepted Missouri’s Digital Equity plan. Using $827,338.00 from the State Digital Equity Planning Grant Program, Missouri created a plan aimed at addressing disparities in digital access, skills and affordability across the state.

Oklahoma’s Digital Equity Plan Accepted

The Department of Commerce’s National Telecommunications and Information Administration (NTIA) has accepted Oklahoma’s Digital Equity plan. Using $882,088.00 from the State Digital Equity Planning Grant Program, Oklahoma created a plan aimed at addressing disparities in digital access, skills and affordability across the state. 

Vermont’s Digital Equity Plan Accepted

The Department of Commerce’s National Telecommunications and Information Administration (NTIA) has accepted Vermont’s Digital Equity plan. The Digital Equity Act, part of the Internet for All initiative and a key piece of President Biden’s Investing in America Agenda, provides $2.75 billion to establish three grant programs that promote digital equity and inclusion. The program aims to ensure that all people and communities have the skills, technology, and capacity needed to reap the full benefits of our digital economy. Using $518,154.00 from the State Digital Equity Planning Grant Program, Vermont created a plan aimed at addressing disparities in digital access, skills and affordability across the state.

Minnesota Broadband Director Builds on State’s Rural Funding Heritage

Doug Adams  |  telecompetitor

Minnesota didn’t wait for the federal government’s help to make funding available for rural broadband deployments. The state’s Border to Border program is often cited as a model for rural broadband funding. That heritage should help the state as it moves forward on implementing its portion of the Broadband Equity, Access, and Deployment (BEAD) rural broadband funding program. Bree Maki, Minnesota’s executive director of the Office of Broadband Development, that while her job first and foremost is to represent and advocate for the state’s interests in the BEAD program, that can be tricky sometimes due to conflicting requirements among the different entities involved. “We’ve been told that states know best and we are eager to get going, but some of the National Telecommunications and Information Administration (NTIA) guidelines and requirements can make it challenging,” Maki said. “We may need to apply for waivers because our definitions of broadband—and what is considered unserved and underserved—are different than BEAD.” The BEAD program considers a location unserved if service levels are below 25/3 and underserved if service levels are between 25/3 Mbps and 100/20 Mbps, while the state of Minnesota considers a location to be unserved if it lacks wired broadband service of 100/20 Mbps. In the end, Maki looks forward to the day when she can look back and see the differences she and her office made for Minnesotans. 

Refuting Bogus Broadband Lobby Claims that Title II Harms Investment in Networks

Derek Turner, Yanni Chen, Matt Wood  |  Analysis  |  Free Press

The claim that restoring light-touch Title II authority and basic Open Internet rules would harm—or did harm, from 2015 through 2018—ISPs’ broadband network investments is extraordinary. Not only because mountains of evidence from the ISPs themselves demonstrate its falsity; it is also extraordinary because the mechanism by which this supposed harm would occur is illogical and unreasonable, and has been proven ever more outlandish over time.  ISPs exist to generate economic returns for their shareholders.  They do so by meeting the strong customer demand for robust and open broadband telecommunications services, not by creating artificial scarcity in the hopes that edge companies will pay for prioritized delivery. The real-world record over the past decade bears out the claim’s falsity.

FCC Seeks Comment on Petition for Rulemaking to Expand Wireless Broadband in 900 MHz Band

Public Notice  |  Federal Communications Commission

On February 28, 2024, ten entities filed a petition for rulemaking asking the Federal Communications Commission to provide an option for 5/5 megahertz broadband networks in paired 896-901 MHz and 935-940 MHz spectrum (900 MHz band).  In this Public Notice, the FCC's Wireless Telecommunications Bureau seeks comment on the Petition. In particular, the FCC seeks comment on whether existing rules would be sufficient to protect incumbent narrowband operations from interference, as well as whether those rules would be sufficient to protect operations in adjacent spectrum bands. 

WT Docket No. 24-99. Comments Due:  May 2, 2024. Reply Comments:  May 18, 2024.

Building an Ecosystem for AI Accountability

Assistant Secretary for Communications and Information Alan Davidson  |  Speech  |  National Telecommunications and Information Administration

At the National Telecommunications and Information Administration, our goal is to make sure important technologies—from broadband to spectrum to emerging innovations like AI—are developed in the service of people and progress. Today, there is no better example of that challenge than the conversation around machine learning and artificial intelligence. Responsible AI innovation can – and will – bring enormous benefits to people. It is going to transform every corner of our economy, from advances in medicine to precision agriculture. But we will only realize the promise of AI if we also address the serious risks it raises today. Those include concerns about safety, security, privacy, discrimination and bias. Risks from disinformation. Impact on the labor market. These are not hypothetical, long-term risks; these are risks that exist right now. For these reasons and more, there is a strong sense of urgency across the Biden Administration—and among governments around the world—to engage on these issues.

Public and private fiber operators tap asset backed security

Linda Hardesty  |  Fierce

One tactic that both private and public fiber companies are using to raise capital is to tap asset backed security (ABS), according to the analysts at TD Cowen. ABS is a type of financial investment that uses income-generating assets as collateral and is an alternative to other ways of raising capital, such as corporate bonds. For example, the public company Frontier inked a $2.1 billion ABS deal last August, making it the first public broadband company in the US to secure funds backed by fiber-to-the-home (FTTH) assets. While Frontier is a public company, ABS is also having an impact among private companies. For instance, Metronet has executed four ABS funding raises, ALLO executed an ABS raise in 2023, and now Ziply is exploring a $1.9 billion ABS raise. Cowen wrote, “The FTTH ABS frenzy has only improved access to capital for private operators.”

Submit a Story

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.


© Benton Institute for Broadband & Society 2024. Redistribution of this email publication — both internally and externally — is encouraged if it includes this message. For subscribe/unsubscribe info email: headlines AT benton DOT org


Kevin Taglang

Kevin Taglang
Executive Editor, Communications-related Headlines
Benton Institute
for Broadband & Society
1041 Ridge Rd, Unit 214
Wilmette, IL 60091
847-220-4531
headlines AT benton DOT org

Share this edition:

Benton Institute for Broadband & Society Benton Institute for Broadband & Society Benton Institute for Broadband & Society

Benton Institute for Broadband & Society

The Benton Institute for Broadband & Society All Rights Reserved © 2024