February 2017

The Making Opportunities for Broadband Investment and Limiting Excessive and Needless Obstacles to Wireless Act (S 19) would authorize federal agencies to implement various programs and measures related to management of the electromagnetic spectrum. It would direct federal agencies to prepare reports, develop information for firms that provide telecommunications services, award prizes for advanced technologies, and ensure that certain radio frequencies are made available for commercial uses.

CBO estimates that enacting S 19 would increase net direct spending by $141 million over the 2018-2027 period, primarily as a result of provisions that would accelerate spending related to making federal spectrum available for commercial use. CBO also estimates that implementing the bill would cost $88 million over the 2018-2022 period, subject to the appropriation of the necessary amounts, mainly to develop new data systems and carry out spectrum management activities. If the Federal Communications Commission increases annual fee collections to offset the costs of implementing the bill, doing so would increase the cost of an existing private-sector mandate on some commercial entities regulated by the agency. Based on information from the FCC, CBO estimates that the incremental cost of the mandate would be small, and fall well below the annual threshold established in UMRA for private-sector mandates ($156 million in 2017, adjusted annually for inflation).

Senate Commerce Committee Chairman John Thune (R-SD) is pushing forward with plans to draft legislation that would codify network neutrality principles into law, even if the Federal Communications Commission hasn’t taken action to roll back the agency’s 2015 Open Internet order. “Sen Thune is open to immediately working with his colleagues on legislation if there is a serious readiness on the other side of the aisle to come to the table,” said Commerce Committee spokesman Frederick Hill. “To date, Democrats haven’t been quite ready to sit down.” At the same time, Hill added that action from the FCC action could lead to “new engagement” from Democrats in a legislative effort, and Chairman Thune is “all for that.” The remarks follow recent comments from House Communications Subcommittee Chairman Marsha Blackburn (R-TN), who said that she wanted to the let the FCC make the first move on net neutrality before legislating.

AT&T is bringing fiber-to-the-home Internet to five new metro areas this month, boosting its fiber total to 51 metro areas in the US. Milwaukee (WI) has AT&T Fiber now, and later in Feb the service will arrive in Columbia (SC), Jackson (MI), Knoxville (TN), and Shreveport (LA). AT&T Fiber is available to nearly four million homes and businesses (up from three million in November 2016), but there's still a lot of work left to put fiber in additional cities and expand deployment in those where it's already available. "By mid-2019 we plan to reach at least 12.5 million locations across 67 metro areas with our 100 percent fiber network," AT&T said. The company agreed to hit those numbers in exchange for getting its purchase of DirecTV approved in 2015.