April 2016

New data: Americans are abandoning wired home Internet

For the most part, America's Internet usage trends can be summed up in a few phrases. The Internet is now so common as to be a commodity; the rich have better Internet than the poor; more whites have Internet than do people of color; and, compared with low-income minorities, affluent whites are more likely to have fixed, wired Internet connections to their homes. But it may be time to put an asterisk on that last point, according to new data on a sample of 53,000 Americans. In fact, Americans as a whole are growing less likely to have residential broadband, the figures show: They're abandoning their wired Internet for a mobile-data-only diet — and if the trend continues, it could reflect a huge shift in the way we experience the Web.

The study, which was conducted for the Commerce Department by the US Census Bureau, partly reaffirms what we already knew. Low-income Americans are still one of the biggest demographics to rely solely on their phones to get online. In 2016 nearly one-third of households earning less than $25,000 a year exclusively use mobile Internet to browse the Web. That's up from 16 percent of households falling in that category in 2013. But even people with higher incomes are ditching their wired Internet access at similar or even faster rates compared with people who don't earn as much. In 2013, eight percent of households making from $50,000 to $75,000 a year were mobile-only. Fast-forward a couple years, and that figure now stands at 18 percent. Seventeen percent of households making from $75,000 to $100,000 are mobile-only now, compared with eight percent two years ago. And 15 percent of households earning more than $100,000 are mobile-only, versus six percent in 2013. Stepping back a bit, as many as one in five U.S. households are now mobile-only, compared with one in 10 in 2013. That's a doubling in just two years. This suggests that having only one form of Internet access instead of two may no longer be explained simply as the result of financial hardship — as might be the case for lower-income Americans — but could be the product of a conscious choice, at least for wealthier people, who are deciding that having both is unnecessary.

BTOP Quarterly Program Status Report, April 2016

Pursuant to the American Recovery and Reinvestment Act of 2009, the National Telecommunications and Information Administration (NTIA) provides this Quarterly Report on the status of the Broadband Technology Opportunities Program (BTOP or Program). This Report focuses on the Program’s activities from July 1 to September 30, 2015. The Recovery Act appropriated $4.7 billion for NTIA to establish BTOP to increase broadband access and adoption;
provide broadband access, training and support to schools, libraries, healthcare providers, and other organizations; improve broadband access to public safety agencies; and stimulate demand for broadband. In 2009 and 2010, NTIA invested approximately $4 billion in 233 BTOP projects and $293 million in 56 State Broadband Initiative (SBI) projects benefitting every state, as well as five territories and the District of Columbia. As of September 30, 2015, nine projects remained in active status, and 271 projects had completed their project activities. This Quarterly Report focuses on the following areas of Program implementation and project oversight:

  • Program status and progress of broadband projects, including closeout efforts, extensions, and Program expenditures.
  • State Broadband Initiative, including the National Broadband Map and recipient progress.
  • Monitoring and grants administration for broadband projects and the results of those efforts.

Sen Thune floats investigation on FCC leaks

Senate Commerce Committee Chairman John Thune (R-SD) is asking the Federal Communications Commission to investigate any employee misconduct in the hours ahead of a hectic meeting in March, where the agency approved rules to offer Internet subsidies to low-income Americans. Chairman Thune expressed concern that agency officials might have leaked nonpublic information in an attempt to thwart a last-minute agreement between three commissioners — two Republicans and one Democrat — to change FCC Chairman Tom Wheeler's proposal ahead of the vote.

"Does the commission plan to investigate who leaked information about the deliberations, pursuant to commission rules? If not, why not?" Chairman Thune asked in a four-page letter sent to Chairman Wheeler April 15. The agency should "consider this letter a complaint requiring an investigation," according to Chairman Thune. A spokesperson for Chairman Wheeler said the agency had received the letter but had no further comment on a potential investigation.

FCC Commissioner Pai Letter to USAC Re Lifeline Program Abuse

I seek your aid in combating the waste, fraud, and abuse that has riddled the Universal Service Fund's Lifeline program since wireless resellers began participating in this program in earnest in 2009. The Federal Communications Commission's recent investigation of Total Call Mobile revealed much about the dubious practices of the industry. American taxpayers deserve to know that the money they contribute each month to the Fund is not wasted or put to fraudulent use. Therefore, I request that the Universal Service Administrative Company (USAC) provide the following information to my office:

  • For each of the four Lifeline wireless resellers named by Total Call Mobile sales agents, a description of any investigations, audits, or reviews that USAC has conducted.
  • A list tof any and all Lifeilne wireless resellers that overrode the safeguards of the NLAD more than 500 times between October 2014 and the present, noting the number and type of such overrides.
  • An explanation of USAC's plan for reviewing, auditing, and investigating eligibility documentation retained by Lifeline wireless reselleers since Feb 17, 2016.

USDA Seeks Applications for Nearly $12 Million in Broadband Grants for Rural Communities

Agriculture Secretary Tom Vilsack announced that US Department of Agriculture is soliciting applications for grants to establish broadband in unserved rural communities through its Community Connect program. Community Connect is administered by USDA's Rural Utilities Service and helps to fund broadband deployment into rural communities where it is not economically viable for private sector providers to provide service.

"Through Community Connect and our other telecommunications programs, USDA helps to ensure that rural residents have access to broadband to run businesses, get the most from their education and benefit from the infinite services that fast, reliable broadband provides," Sec Vilsack said. "USDA is committed to supporting America's rural communities through targeted investments in our bioeconomy and renewable energy, local and regional food systems, conservation initiatives and rural development." USDA plans to award up to $11.7 million in grants through the Community Connect grant program. The grants fund broadband infrastructure to help foster economic growth by delivering connectivity to the global marketplace. The grants also fund broadband for community centers and public institutions. USDA has invested $160 million in more than 240 projects to bring broadband to unserved rural communities since the Community Connect Program was created in 2002.

Declaratory Ruling About Reimbursement of Pre-Auction Expenses

In this Declaratory Ruling, we determine that the Spectrum Act’s reimbursement mandate encompasses “costs reasonably incurred” prior to the close of the auction that otherwise are eligible for reimbursement. We take this action in order to remove uncertainty regarding the eligibility of expenses incurred before and during the auction for reimbursement. Of course, only stations that ultimately are reassigned to a new channel in their pre-auction band in the repacking process will be eligible for reimbursement of such expenses, which will be subject to the same reimbursement process as postauction expenses. By allowing broadcasters to get a jump start on the relocation process, this Ruling will promote a rapid, non-disruptive transition following the broadcast television spectrum incentive auction.

Remarks of Deputy Assistant Secretary Simpson at the NTCA 2016 Legislative and Policy Conference

As you know from your own experiences, today broadband is a basic infrastructure – as vital as roads, sewer systems, and electrical lines. At the community level, broadband is critical for driving growth, attracting new businesses, creating jobs, and remaining competitive in the digital economy. And for individuals, access to broadband – and the know-how to use it – opens the door to employment opportunities, educational resources, healthcare services, government benefits, and social networks. These days, it can be practically impossible to apply for a job or even complete a seventh-grade homework assignment without broadband. So closing the gaps that still exist is a basic equity issue. From first-hand experience, you all also know the many challenges involved in delivering broadband to the far reaches of our country.

I’m here today to talk to you about what the National Telecommunications & Information Administration is doing to help. And I’m offering NTIA as a partner and resource to you and the communities you serve. The cornerstone of our effort is our BroadbandUSA program. We launched this program in 2015 to build on the lessons learned, best practices, and collective wisdom from across our broadband grant portfolio.

Dish Sues Over Online Streaming Device

The International Broadcaster Coalition Against Piracy (IBCAP) praised member company Dish for joining China Central Television and others for filing a lawsuit in a New York District court against the h.TV device for streaming TV content. “This lawsuit is important as it’s critical for content providers like TVB and CCTV to protect their works,” said Chris Kuelling, executive director of IBCAP. “We stand with Dish, TVB and CCTV as they fight this unlawful activity in court." The suit alleges that h.TV runs a pirate broadcasting network that "captures" TV programming and streams it over the Internet 24/7. "Each h.TV device includes a software interface that provides to h.TV users, free of charge, software applications or “apps” that enable users to access, view, and share infringing streams of television programming in the United States, including programming from CCTV and others," the complaint reads.

Tech Policy Institute Fellow Scott Wallsten Slams Set-Top Proposal

The Technology Policy Institute's Scott Wallsten says the Federal Communications Commission has provided no economic rationale to justify its new set-top box proposal, and provides no evidence of consumer harm from the current set-top marketplace or evidence that consumers would be better off under the FCC's proposal. In comments to the FCC, Wallsten, VP for research and senior fellow at TPI, says that, by contrast, there is clear evidence that the set-top box marketplace is competitive. Wallsten, says the FCC needs to explain why it believes the set-top marketplace is not competitive and why regulatory intervention is necessary.

Campaigns Urged to Buy Minority Media

Multicultural Media, Telecom and Internet Council (MMTC) has joined with other civil rights and minority media organizations to urge the presidential candidates, party national committees and top SuperPACs to include minority media buys in their campaign ad plans, and not as last-minute afterthoughts. "Credibility and engagement of voters must be earned over time from the beginning to the end of campaigns," they wrote. "They cannot be produced with a 20-year-old recycled ad template published in the final two weeks of a campaign – a pattern that we have seen appear every two years."

The candidate letters went to "The Honorable" Hillary Clinton, Sen Ted Cruz (R-TX), Gov John Kasich (R-OH), and Sen Bernie Sanders (I-VT), and "Mr. Donald Trump." Among those also signing on to the letter were the National Association of Black Owned Broadcasters, the NAACP, and the National Urban League. They asked for an answer within 10 days on their specific plans to use minority broadcast, print and online media.