August 2017

Broadband Infrastructure Alone Does Not Bridge the Digital Divide

[Commentary] Broadband infrastructure is only a prerequisite for adequate digital inclusion, not a sustainable solution in itself. Research examining the economic impacts of broadband access in rural regions in the US found a stark difference in economic outcomes when ‘access’ was defined as the availability of broadband infrastructure versus ‘access’ being defined as the adoption of a residential broadband connection. Broadband infrastructure alone provided only minimal economic benefits to households and regions, while increased broadband adoption was linked to individual-level and community-level economic improvements.

The cost of fixed broadband subscriptions is often cited as the single most important factor in hindering broadband adoption in areas where the infrastructure is available. However, research suggests that while affordability is certainly key, there are also other factors that should be considered. One well-cited cross-country analysis of cultural factors affecting broadband adoption lists lack of understanding of the services and content that can be accessed online as one reason individuals in the US may not adopt high-speed broadband, as well as an actual insufficiency in online content relevant to a particular community. To truly equalize the digital playing field, we need to carefully consider the factors affecting individuals’ ability to gain high-speed broadband access once the infrastructure becomes available in their geographic region. The findings cited here speak to the importance of investments in educational programs and services addressing digital literacy, content creation, and other aspects critical to sustainable broadband adoption.

[Jana Wilbricht is a Ph.D. Candidate in Communication Studies at the University of Michigan, and worked with NDIA during the summer 2017 as a research fellow of the Consortium on Media Policy Studies (COMPASS).]

President Trump Hotel at Night: Lobbyists, Cabinet Members, $60 Steaks

In this first tumultuous summer of the Trump Administration, the Trump International Hotel has cemented its status as a gathering spot for prominent conservatives and a place for the president’s supporters to see, be seen and curry favor with people in power, one $24 chocolate cigar at a time. (The selfies are free.) The hotel — a melting pot for Trump family members, Trump surrogates, tourists, YouTube celebrities, journalists and the occasional white nationalist — has earned that status in no small part because it is home to the only Washington restaurant that President Trump visits.

His company also earns a cut — about $20 million over 15 months, according to financial disclosure forms — which has outraged ethics experts and led to various lawsuits, including one filed in January against the Trump administration by a group of lawyers. They accused the president of violating the Constitution by allowing his hotels and other businesses to accept payments from foreign governments. Several visits in August by reporters for The New York Times confirmed that some of the swamp’s most prominent Republicans come out at night and gather in the lobby of the 263-room hotel, conveniently located on Pennsylvania Avenue five blocks from the White House.

Trump administration overlooks critical digital policy posts

With a bundle of Senate confirmations of Trump appointees just before the August congressional recess, it’s a good time to take stock of what progress the Trump administration has made in filling the positions that shape policy in the digital arena. My Brookings paper last fall, Bridging The Internet-Cyber Gap: Digital Policy Lessons for the Next Administration, included a “digital plum book” that identified the positions from the full Plum Book (the Government Printing Office compilation of senior federal positions that is a roadmap to presidential appointments) with real impact on the constellation of issues that affect the digital economy and digital society.

To see how the Trump administration is doing, we used the digital plum book as a scorecard. There are 95 positions in the digital plum book. For 65 of these positions, the administration has at least announced a nominee, and 37 of these have been confirmed to date. This compares favorably to unfilled positions overall: the Partnership for Public Service counts 117 confirmed out of 591 positions, with another 106 pending nominations as of this writing. The digital plum book also identified 32 positions as jobs where a broad understanding of digital issues is critical to the mission. Of these, 13 have been filled and another two have been announced. For the remainder, 12 are being filled in an acting capacity, and the other five are vacant altogether.

1 million people pay nothing for cellphone service, so how does FreedomPop make money?

There are times when FreedomPop founder Stephen Stokols would get better coverage or service using a competing cellular carrier. Like when he got booted from his own provider after getting tripped up by confusing settings. But Stokols — along with his 2 million customers — has been willing to suffer occasional headaches in exchange for an unbeatable deal. Half the people using FreedomPop pay nothing for cellphone service, including mobile Internet access. There are limits on monthly usage (500 megabytes in the U.S.) and caps on calling and texting (three hours and 500 messages). Finding a shop, reaching a customer service agent or buying a phone from FreedomPop can be complicated. And users need a credit card.

Stokols contends, though, that many should find the trade-offs attractive because he pegs median mobile data usage in the U.S. at about 700 megabytes per month. FreedomPop can afford to slash prices thanks to its departures from industry conventions, including accepting lower profit margins. FreedomPop’s investors say that the company is special because its marketing costs, about $10 per customer, are lower than anyone else’s. Free offers tend to get noticed with little spending on advertising. That lets FreedomPop charge customers less.

Statement Of Commissioner Brendan Carr On His First Official Trip

During my confirmation hearing last month, I spoke about the important role that tech and telecom policies can play in creating jobs, spurring investment, and growing the economy for the benefit of all Americans. It is one of the reasons that I am focused on policies that will promote broadband deployment. Whether it is the workers that manufacture and deploy broadband infrastructure, the app economy that runs over high-speed networks, or the businesses that use these connections to reach customers around the world, I testified about the ability of broadband to harness the talents of all Americans, to create good-paying jobs, and to help drive our nation’s economic growth.

Small Business Benefits of Rural Broadband are Plentiful

There are many small business benefits of rural broadband, argues ACT – The App Association in a well-researched blog post that cites numerous real-world examples of those benefits. ACT, an association of small technology firms, wrote the blog post to advocate for TV white spaces (TVWS) broadband, but the benefits cited would apply to other high-speed broadband technologies as well. The business benefits of rural broadband that ACT references include:
Small and medium businesses that access global markets over the internet have a survival rate of 54%, which is 30% higher than for SMBs that are not internet-connected, according to the World Economic Forum.
30% of companies that sell goods online through Etsy are based in rural areas – and considering that $2.84 billion in goods were sold through Etsy last year, those rural retailers apparently are generating considerable revenues online. Etsy sellers generally are small businesses, which the company refers to as entrepreneurs and “internet-enabled microbusinesses.”
Small businesses create roughly two thirds of jobs in rural America, according to the U.S. House of Representatives small business website, highlighting the important economic benefits those businesses could generate, provided that they have high-speed broadband available to them.