May 2015

SBA Wants To Know How Big Data Affects Small Business

The Small Business Administration is trying to figure out where big data meets small business. While large businesses have been using large volumes of data to make better business decisions, "with greater access and availability of cost-effective technology, small businesses are doing the same," according to a recent solicitation for research. For instance, small businesses and retailers can use online transaction history, analyzed in aggregate, to make decisions about sales and marketing programs, better understand customer behavior and predict the number of staffers they'll need, according to SBA. But in general, "the effect of big data on small businesses is relatively unknown," the solicitation says -- and it's unclear how feasible it is for small businesses to collect, analyze and utilize data given possible limitations in technological and analytical resources. SBA is specifically looking for research on small business' ability to use data analytics, especially in cases where “where small firms are mining their own data for creative uses” -- aside from using data sets collected by tech giants such as Google and Facebook.

AT&T hunts for 700 MHz spectrum in Kentucky, Ohio and West Virginia

AT&T is on the hunt for more 700 MHz spectrum to fill coverage gaps in its footprint, a reminder that even though the carrier claims to have largely finished its LTE buildout it still plans to purchase additional spectrum to add coverage and capacity to its network. AT&T filed documents with the Federal Communications Commission seeking to purchase three Lower 700 MHz C Block licenses from East Kentucky Network. The licenses cover parts of Kentucky, Ohio and West Virginia. As is usual with such transactions, terms of the deal were not disclosed and AT&T claims the spectrum will allow it increase capacity, enhance existing services and let it launch new products and services in the license areas. Under the agreement, AT&T would be assigned 12 MHz of Lower 700 MHz C Block spectrum in 20 counties covering all of three Cellular Market Areas (Huntington-Ashland, which touches all three states, and Lexington-Fayette and Madison in Kentucky).

Post-transaction, AT&T would hold 113 to 145 MHz of spectrum in total, and 43 to 55 MHz of below-1-GHz spectrum, in the three CMAs. Separately, AT&T struck a deal with Cellular Properties to purchase two Cellular A Block licenses and associated common carrier fixed point-to-point microwave licenses in two CMAs in parts of southern and eastern Illinois. AT&T would be assigned 25 MHz of cellular spectrum in 11 counties covering all of one CMA and part of the other. Post-transaction, AT&T would hold 101 to 173 MHz of spectrum in total, and 31 to 68 MHz of below-1-GHz spectrum, in these two CMAs in Illinois.

FCC’s Wireline Competition Bureau Low-Income Broadband Pilot Program Staff Report

Participating carriers in the Federal Communications Commission’s Low-Income Broadband Pilot Program were required to collect and submit a large amount of anonymized data so that the FCC and others could use such information for their own studies and observations. The data collected during each project is being released with this Report to further enrich the public’s understanding of low-income broadband use. This Report highlights several important patterns in the data relevant to any consideration of Lifeline support for broadband:

  • First, many of the pilot projects provide information about Lifeline-eligible consumers’ preferences for service and their willingness to pay for services or hardware. Within the fixed service projects, in particular, patterns suggest consumers were willing to pay for speeds within the mid-range of options, though there was little interest in the highest speed tiers. For mobile service projects, when consumers were given the option between hotspot plans versus smartphone plans, the majority selected smartphone service plans.
  • Second, several of the pilot projects tested varying subsidy amounts or discounts offered to consumers for both the service and a device. Patterns within the data indicate that cost to consumers does have an effect on adoption and which plans they choose. In several of the projects, when given the choice among service plans, new adopters were willing to pay for broadband service, but tended to choose more modest and affordable speeds and data allowances.
  • Third, requiring ETCs to offer or provide digital literacy training does not appear to be an efficient or effective model for converting non-adopters to adopters. Participating consumers generally had little interest in training provided by the ETCs. This raises the question of whether other organizations specializing in digital literacy training may be more successful at such training.

Additionally, it is important to note that, by design, the pilot projects only studied broadband adoption among the subset of low-income consumers who were not current subscribers to any broadband service.

Driving Lifeline Updates With Data

In 2012, the Federal Communications Commission started looking ahead about gathering the data to consider Lifeline support for broadband, which has become essential to modern life. Specifically, the FCC launched the Low Income Broadband Pilot Program to study what policies might overcome the barriers to adoption of broadband by low-income households. I’m happy to say that the data are now in from these 14 varied pilots, and we’re releasing the data to the public for analysis, along with our own short report with a few immediate takeaways:

  • First, consumers respond well to having a choice of plans. Households have different needs for data speeds, usage amounts, service type and devices. The pilots showed low-income consumers do not all want or need the same products.
  • Second, while price is not the only barrier to broadband adoption, price matters.
  • Third, carriers aren’t necessarily the best at addressing other barriers to broadband adoption - lack of digital literacy and relevance to one's life.

The pilots have helped staff begin to understand the challenge of tackling low-income broadband adoption. For starters, there is no silver bullet. And, while the pilots were focused on different approaches for adoption, let's be clear that Lifeline is focused on ensuring services are affordable, not to solve the broadband adoption challenge. As the Commission moves forward to consider how to restructure the Lifeline program for the digital age, the pilot report will help provide useful data for the Commission and public to consider.

[Veach is the Chief of the FCC’s Wireline Competition Bureau]

Remarks of Commissioner Clyburn at SHLB Coalition

What a pleasure it is for me to be able to say thank you in person for the Schools, Health and Libraries Broadband Coalition's (SHLB) advocacy on a wide range of issues, from the FCC's four universal service programs to Open Internet....We must ensure that the funding, which flows from E-rate reforms to deploy fiber and robust Wi-Fi into all of our schools and libraries, is leveraged so that every child has access to world-class education.

The FCC has embraced the goal of having 100 Megabits per 1,000 students to all of our schools in the near term, and 1 Gigabit per 1,000 students to all going forward. Ambitious? Yes. Achievable? Yes, but only, with your help. I am optimistic, however, because SHLB understands that e-rate modernization was about far more than just adopting speed targets and revamping a budget. And I am optimistic, because the FCC remains focused on its objective of ensuring access to world-class digital learning tools - an objective shared by SHLB and the education community. But the FCC needs your continued feedback. Tell us how the reforms are working in practice, share any concerns you have and, of course, tell us what we are doing right, because positive feedback is welcome as well.

Pass the USA Freedom Act

[Commentary] The proper balance between civil liberties and national security is delicate. Fortunately, our Constitution set up a political system capable of striking the compromises necessary to provide for citizens’ privacy and for the nation’s safety. In June 2013, we learned the federal government was illegally collecting records of millions of Americans’ calls. A bipartisan, bicameral group of Judiciary Committee members immediately began negotiating a solution. Along the way, privacy groups, technology companies, the National Security Agency, the Federal Bureau of Investigation and the House and Senate intelligence committees joined the discussion. The result was the USA Freedom Act -- which the Senate should debate and pass before time runs out.

With the USA Freedom Act as the best legislative option available, it is time for Senate Republican leaders to honor their promise to govern by regular order and allow for a full and open debate. By failing to debate the bill, we are risking an ugly fight that could lead to a sunset of critical national security authorities. Instead of political gamesmanship, we must restore Americans’ confidence in their government and maybe, just maybe, we as a Congress can regain their trust. As elected officials in the most powerful country in human history, we have an obligation to protect the liberties that separate us from the rest of the world and protect all Americans from those who wish us harm.

USDA Announces Funding Opportunity for Distance Learning and Telemedicine Projects

Agriculture Secretary Tom Vilsack announced that the US Department of Agriculture (USDA) is accepting applications for its Distance Learning and Telemedicine (DLT) grant program, which provides increased access to education, training and health care resources in rural areas. "This program provides people who live and work in rural areas with better access to a variety of educational and health care services," Secretary Vilsack said. "For example, because of the DLT program, students in rural areas can take advanced placement classes, residents can have access to specialized medical services not typically available, and many other benefits for rural communities."

USDA's Rural Utilities Service, a Rural Development agency is making $19 million available for fiscal year 2015. The Distance Learning and Telemedicine Program finances telecommunications equipment, computer networks and advanced technologies for use by students, teachers, medical professionals and rural residents. Minimum grant amounts are $50,000; maximum amounts are $500,000 for fiscal year 2015.

AT&T et al challenging net neutrality order on 1st Amendment grounds

Remember how Verizon argued in 2012 that network neutrality rules violate its First and Fifth Amendment rights? While Verizon itself isn't challenging the Federal Communications Commission's latest net neutrality order, AT&T and the other Internet service providers that are suing the FCC have resurrected this argument. In a statement of issues that AT&T intends to raise when the case moves further into the court process, the company said that it plans on challenging whether the FCC’s net neutrality order "violates the terms of the Communications Act of 1934, as amended, and the First and Fifth Amendments to the US Constitution." The First and Fifth Amendment will be used to attack the FCC's decision to reclassify both fixed and mobile broadband as common carrier services, as well as the FCC's assertion of authority over how ISPs interconnect with other networks. CenturyLink also raised the First and Fifth Amendments in its statement of issues, as did CTIA-The Wireless Association and the United States Telecom Association.

Cable companies diverged from the telecommunications companies here, with the American Cable Association challenging only on Fifth Amendment grounds, while the National Cable & Telecommunications Association didn't mention any Constitutional amendments. AT&T et al said they will also argue that the FCC's ruling "is based on an unreasonable interpretation" of Title II of the Communications Act, which regulates common carriers. They will also argue that the FCC violated the Administrative Procedure Act (APA). The NCTA said it will argue that the FCC violated "the APA’s procedural requirements by failing to provide notice and an opportunity to comment on critical features of the Order that the FCC ultimately adopted."

Public Knowledge Asks DC Circuit to Keep Net Neutrality Rules in Effect During Legal Challenge

Public Knowledge and other consumer groups and companies filed an Opposition to the Motion to Stay the Federal Communications Commission’s network neutrality Order in the DC Circuit. A stay would force the FCC to delay implementing its landmark Open Internet Order, which reclassifies broadband Internet access service under Title II of the Communications Act. A stay would prevent the net neutrality rules from taking effect, denying customers the guarantee of an Open Internet while causing uncertainty for companies and consumers alike.

Public Knowledge Senior Staff Attorney John Bergmayer said, "For the rules to be stayed, the carriers must meet an exacting legal standard. They have failed to do so. First, the DC Circuit is likely to uphold the FCC's rules, as the FCC has followed the guidance the DC Circuit gave it the last time Open Internet rules were before the court. Second, the ‘harms’ the carriers point to are largely imaginary, or nothing more than complaints about being prevented from doing things the rules are supposed to prevent them from doing; e.g., giving preferential treatment to some online content, or harvesting Internet usage data for marketing purposes. Finally, granting a stay of the rules would cause real harm to Internet users, organizations, and businesses of all kinds, and would be contrary to the public interest. Whatever the Court decides as to the carriers’ preliminary request for a stay, however, we are confident it will ultimately find that the FCC acted lawfully by protecting consumers with strong Open Internet rules grounded in Title II of the Communications Act.”