Daily Digest MaytheFourthBeWithYou, 2023

Benton Institute for Broadband & Society
Table of Contents

Broadband Funding

Eligibility of 1.4 Million Locations for BEAD Funding at Stake as NTIA Weighs a Critical Decision  |  Read below  |  Joan Engebretson  |  telecompetitor
Buy America and BEAD  |  Read below  |  Doug Dawson  |  Analysis  |  CCG Consulting

State/Local Initiatives

Broadband expansion in Oklahoma reaches major milestone  |  Read below  |  Colleen Wilson  |  KOKH
What does blended finance for broadband look like? Look at Macon County, Alabama.  |  Read below  |  Brian Vo  |  Press Release  |  Connect Humanity

Spectrum/Wireless

Air travel chaos looms as US keeps 5G altimeter refit deadline  |  Read below  |  Max Matza  |  BBC

Accessibility

Op-ed: Digital Accessibility Is a Bigger Education Issue Than We Think. Here’s What We Can Do About It.  |  EdSurge

AI/Platforms/Social Media

Biden-⁠Harris Administration Announces New Actions to Promote Responsible AI Innovation that Protects Americans’ Rights and Safety  |  Read below  |  Press Release  |  White House
     FTC Chair Lina Khan: We Must Regulate A.I. Here’s How.  |  New York Times
FTC Proposes Blanket Prohibition Preventing Facebook from Monetizing Youth Data  |  Read below  |  Press Release  |  Federal Trade Commission

Lobbying

Big Tech-funded groups try to kill bills to protect children online  |  Read below  |  Cristiano Lima, Cat Zakrzewski  |  Washington Post

Company News

Brightspeed gets $500 Million investment from Abu Dhabi firm Mubadala  |  Read below  |  Masha Abarinova  |  Fierce
Lumen Technologies reports first quarter 2023 results  |  Read below  |  Press Release  |  Lumen
Consolidated Communications Reports Record Consumer Fiber Broadband Net Adds and Announces First Quarter 2023 Financial Results  |  Read below  |  Press Release  |  Consolidated Communications

Policymakers

Next Century Cities Launches Nationwide Leadership Search; Executive Director Francella Ochillo to Depart This Summer  |  Read below  |  Press Release  |  Next Century Cities

Stories From Abroad

The Online Safety Bill is the UK’s tortured attempt to remake the internet  |  Vox
European Space and Telecoms Players Sign Partnership Agreement to Bid for IRIS2 Constellation  |  Airbus
Today's Top Stories

Broadband Funding

Eligibility of 1.4 Million Locations for BEAD Funding at Stake as NTIA Weighs a Critical Decision

Joan Engebretson  |  telecompetitor

Approximately 1.4 million locations currently eligible for funding in the Broadband Equity Access and Deployment (BEAD) Program would not be eligible if the National Telecommunications and Information Administration (NTIA) were to change its definition of “reliable” broadband, according to an analysis by telecom consultancy Vantage Point Solutions. At issue is whether fixed wireless access (FWA) service deployed in unlicensed spectrum bands is considered “reliable.” Currently, NTIA doesn’t consider it to be reliable because of concerns about the long-term ability of unlicensed spectrum to support network performance requirements. FWA providers say those concerns are overblown. NTIA’s definition impacts an area’s eligibility for BEAD funding because areas lacking “reliable” service at speeds of at least 25/3 Mbps are considered unserved and eligible for BEAD funding, and areas lacking “reliable” service at speeds of at least 100/20 Mbps are considered underserved and are also eligible. Reliable service is defined to include “cable modem/hybrid fiber coax technology, digital subscriber line (DSL) and fixed wireless using entirely licensed spectrum or a hybrid of licensed and unlicensed spectrum.”

Buy America and BEAD

Doug Dawson  |  Analysis  |  CCG Consulting

In the State of the Union speech earlier in 2023, President Biden made it clear that he wants to see the monies spent on infrastructure projects follow the Buy America rules. The law says that purchasing funded by the US government should have a preference for using American-made products. The rules allow for waivers from this provision, but the presumption is that without a waiver that American goods must be used. The National Telecommunications and Information Administration (NTIA) requested waivers from Buy America rules when administering past grant programs, including the recent $1 billion middle-mile grants. The NTIA has made it clear that it doesn’t see any need for a waiver to buy American fiber optic glass or cable and says there should be sufficient time for manufacturers to re-shore or expand US manufacturing to meet the demands from the Broadband Equity, Access, and Deployment (BEAD) grants. The market reality is that most of the costs of any broadband grant project will be spent on American inputs. The cost of labor is usually the largest component of network costs, and the grants require this work to be done by American firms. As the NTIA points out, there are plenty of sources of American fiber and conduit. But the sticky item is going to be electronics. If the NTIA plays hardball on fiber electronics, it will be nearly impossible that any broadband provider can fulfill the Buy American provision.

State/Local

Broadband expansion in Oklahoma reaches major milestone

Colleen Wilson  |  KOKH

High-speed internet access is expanding in rural Oklahoma. The Cooperative Broadband Coalition, or CBC, celebrated a major milestone: 100,000 Oklahomans who previously did not have access now had access to high-speed internet. The Cooperative Broadband Coalition said 10 electric cooperatives with fiber subsidiaries are experiencing adoption rates as high as 52% in rural Oklahoma, adding about 2,000 subscribers a month.

What does blended finance for broadband look like? Look at Macon County, Alabama.

Brian Vo  |  Press Release  |  Connect Humanity

Connect Humanity is investing in a fiber network in Macon County, Alabama. The Macon County Economic Development Authority (MCEDA) has been working diligently to expand internet access in the county, where 40% of families have lacked access to home internet at broadband speeds. With support from Rural LISC, MCEDA entered into a public private partnership with rural internet provider Point Broadband to build out a fiber network that would deliver quality, affordable broadband to families and businesses across the county. While MCEDA lined up substantial philanthropic and state grants, more funding was needed to make network economics stack up. And so Connect Humanity worked to structure a finance package that fit MCEDA’s constraints, providing additional funding and making the network economics work for Point Broadband to bring its own capital to the mix. The result is a truly blended finance package that combines public subsidies, philanthropic grants, in-kind make-ready construction from a local utility, investment from the service provider, and Connect Humanity’s impact dollars. This investment enables the build of a +$3 million fiber network that will connect nearly 1,400 additional homes, businesses, and community institutions.

Spectrum

Air travel chaos looms as US keeps 5G altimeter refit deadline

Max Matza  |  BBC

The US will not delay a deadline for airlines to refit planes with new sensors to address possible 5G interference, despite concerns the cut-off date could cause travel disruption. Transport Secretary Pete Buttigieg said that airlines were told the July 1, 2023 deadline would remain in place. Airlines have warned that they will not be able to meet the deadline and may be forced to ground some planes. Telecoms firms have previously delayed 5G rollout to allow airlines to adapt. The Federal Aviation Administration (FAA) and aviation companies have previously raised concerns that C-Band spectrum 5G wireless could interfere with aircraft altimeters, which measure a plane's height above the ground. Major tech companies, like Verizon and AT&T, agreed in 2022 to delay the rollout of 5G technology until 1 July 2023 to allow airlines time to retrofit their altimeters. However, technology companies have said 5G is safe and have accused the aviation industry of fearmongering and distorting facts.

AI/Platforms/Social Media

Biden-⁠Harris Administration Announces New Actions to Promote Responsible AI Innovation that Protects Americans’ Rights and Safety

Press Release  |  White House

The Biden-Harris Administration announced new actions to further promote responsible American innovation in artificial intelligence (AI) and protect people’s rights and safety:

  • The National Science Foundation announced $140 million in funding to launch seven new National AI Research Institutes.
  • AI developers—including Anthropic, Google, Hugging Face, Microsoft, NVIDIA, OpenAI, and Stability AI—will participate in a public evaluation of AI systems, consistent with responsible disclosure principles—on an evaluation platform developed by Scale AI—at the AI Village at DEFCON 31.
  • The Office of Management and Budget (OMB) will be releasing draft policy guidance on the use of AI systems by the US government for public comment.

FTC Proposes Blanket Prohibition Preventing Facebook from Monetizing Youth Data

Press Release  |  Federal Trade Commission

The Federal Trade Commission (FTC) proposed changes to the agency’s 2020 privacy order with Facebook after alleging that the company has failed to fully comply with the order, misled parents about their ability to control with whom their children communicated through its Messenger Kids app, and misrepresented the access it provided some app developers to private user data. As part of the proposed changes, Meta, which changed its name from Facebook in October 2021, would be prohibited from profiting from data it collects, including through its virtual reality products, from users under the age of 18. It would also be subject to other expanded limitations, including in its use of facial recognition technology, and required to provide additional protections for users. This is the third time the FTC has taken action against Facebook for allegedly failing to protect users’ privacy. This action by the FTC alleges that Facebook has violated the 2020 order, as well as the Children’s Online Privacy Protection Act Rule (COPPA Rule). The proposed changes to the 2020 order, which would apply to Facebook and Meta’s other services such as Instagram, WhatsApp, and Oculus, include:

  • Blanket prohibition against monetizing data of children and teens under 18: Meta and all its related entities would be restricted in how they use the data they collect from children and teens
  • Pause on the launch of new products, or services: The company would be prohibited from releasing new or modified products, services, or features without written confirmation from the assessor that its privacy program is in full compliance with the order’s requirements and presents no material gaps or weaknesses.
  • Extension of compliance to merged companies: Meta would be required to ensure compliance with the FTC order for any companies it acquires or merges with, and to honor those companies’ prior privacy commitments.
  • Limits on future uses of facial recognition technology: Meta would be required to disclose and obtain users’ affirmative consent for any future uses of facial recognition technology. 
  • Strengthening existing requirements: Some privacy program provisions in the 2020 order would be strengthened, such as those related to privacy review, third-party monitoring, data inventory and access controls, and employee training.

The independent assessor, tasked with reviewing whether the company’s privacy program satisfied the 2020 order’s requirements, identified several gaps and weaknesses in Facebook’s privacy program, according to the Order to Show Cause, in which the Commission notes that the breadth and significance of these deficiencies pose substantial risks to the public. The Commission voted 3-0 to issue the Order to Show Cause.

Lobbying

Big Tech-funded groups try to kill bills to protect children online

Cristiano Lima, Cat Zakrzewski  |  Washington Post

Federal efforts to pass children’s online safety protections have languished amid disagreements between House and Senate leaders about which proposals to rally around. State officials have rushed to fill the void with a wave of their own bills, including proposals in Maryland and half a dozen other states requiring tech companies to vet their products for risks to children before rolling them out. But the push has faced broad opposition from tech trade groups representing some of the United States’ biggest digital platforms, who have blitzed statehouses around the country in an effort to stymie the bills, even as many of their member or partner companies including Amazon remain largely silent. Tech groups including NetChoice, CCIA, and the Chamber of Progress have fired off letters warning about the potentially catastrophic impact of the bills on user privacy and free speech online, deployed lobbyists to meet with key state officials, and sent their leaders to testify in opposition to the efforts in Maryland, Minnesota, and Nevada, among other states — part of a widespread campaign to neutralize the budding regulatory push. Supporters of the proposed legislation, which they say is necessary to prevent children from being exposed to addictive social media features and other harmful designs, say the tech groups’ lobbying has at times relied on misleading or deceptive tactics aimed at stoking confusion about what the proposals do.

Company News

Brightspeed gets $500 Million investment from Abu Dhabi firm Mubadala

Masha Abarinova  |  Fierce

North Carolina-based broadband provider Brightspeed has caught the eye of Abu Dhabi sovereign investor Mubadala, which will invest $500 million into the operator. The investment, subject to regulatory approvals and conditions, would make Mubadala a minority shareholder alongside Apollo Global Management, Brightspeed’s parent company. Apollo, in October 2022, closed a $7.5 billion deal to acquire Lumen’s assets in 20 states. Mubadala boasts a global portfolio of $284 billion, spanning six continents across sectors such as digital infrastructure, real estate, and credit investments. Khaled Abdulla Al Qubaisi, CEO of Real Estate and Infrastructure Investments at Mubadala, said the firm “sees [a] huge opportunity in supporting Brightspeed's growth strategy in transitioning large swathes of the US to fiber connectivity and promoting digital equity and inclusion.”

Lumen Technologies reports first quarter 2023 results

Press Release  |  Lumen

Lumen Technologies reported results for the first quarter ended March 31, 2023. The company:

  • Increased its Quantum Fiber-enabled location pacing, deploying approximately 120 thousand fiber locations during the first quarter of 2023;
  • Increased Grow revenue to $1.128 billion for the first quarter of 2023, compared to $1.091 billion for the fourth quarter of 2022;
  • Reported Net Income of $511 million for the first quarter of 2023, compared to reported Net Income of $599 million for the first quarter of 2022.

Consolidated Communications Reports Record Consumer Fiber Broadband Net Adds and Announces First Quarter 2023 Financial Results

Press Release  |  Consolidated Communications

Consolidated Communications reported results for the first quarter of 2023. The company:

  • Achieved record consumer fiber broadband net adds of 12,337, an increase of 60% versus the first quarter of 2022. Consumer broadband net adds were positive by 2,404;
  • Grew consumer fiber broadband revenue by 56% and increased the average-revenue-per-user (ARPU) by 5.7%;
  • Completed 53,858 fiber upgrades to Gigabit+ speeds, now extending fiber-to-the-premises (FttP) capabilities to 40% of the addressable market.

 

Policymakers

Next Century Cities Launches Nationwide Leadership Search; Executive Director Francella Ochillo to Depart This Summer

Press Release  |  Next Century Cities

After four years at the helm, Francella Ochillo announced that she will move on from her role as Executive Director of Next Century Cities (NCC), an organization committed to bringing connectivity within reach for every resident in every community. Since joining Next Century Cities in 2019, Ochillo has been recognized as one of the most impactful digital rights advocates in the country. A champion for raising the voices of local officials working to close digital divides in their communities, she empowered on-the-ground leaders with tactical ways to influence federal policy making and state broadband programs. Under her leadership, NCC developed strategies for local governments and community leaders to operationalize once unimaginable goals to connect everyone, everywhere. The search for a new Executive Director will be led by NCC's Advisory Board, composed of Rondella Hawkins, Telecommunications & Regulatory Affairs Officer for the City of Austin; Aldona Valicenti, outgoing Commissioner/Chief Information Officer with Lexington Fayette Urban County Government; and Coralette Hannon, Director of Livable Communities for AARP Government Affairs. 

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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 David L. Clay II (dclay AT benton DOT org) — we welcome your comments.


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Kevin Taglang

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