Doug Dawson
Rural America is Losing Patience
Local broadband advocates and politicians tell me that folks with little or no broadband are hounding them about when they are going to see a broadband solution. A large part of the frustration is that folks have heard that broadband is coming to rural America, but they aren’t seeing any local progress or improvement. A big part of the reason for this frustration is that folks aren’t being given realistic timeframes for when they might see a solution.
Please Don’t Force Low Rates
The National Telecommunications and Information Administration (NTIA) conducted an annual broadband survey in 2021. The survey asked folks who didn’t have home broadband what they would be willing to pay, with the question, “At what monthly price, if any, would your household buy home Internet service?” The purpose of the survey was to understand the kind of price points that might be needed to get broadband to more of these households. Three-quarters of respondents said they would only get broadband if it was free. I find this result to be troubling for several reasons:
The Demand for Middle-Mile Fiber
The deadline for the National Telecommunications and Information Administration (NTIA)'s middle-mile grant program just closed, and the NTIA said that it received 235 applications totaling $5.5 billion in grant requests for a $1 billion grant program. I was surprised when the Infrastructure Investment and Jobs Act (IIJA) legislation allocated only $1 billion to middle-mile fiber. That works out to only $20 million per state. It will be interesting to see how the NTIA spreads the funding.
Broadband Satellite Issues
One of the most interesting aspects of serving broadband from low-orbit satellites is that it brings issues related to space into the broadband discussion. There are two recent events that highlight our new focus on low-earth orbit satellites. The first is a piece of legislation introduced by Senators Maria Cantwell (D-WA), John Hickenlooper (D-CO), Cynthia Lummis (R-WY), and Roger Wicker (R-MS). The legislation is called the Orbital Sustainability (ORBITS) Act.
Starlink and the Rural Digital Opportunity Fund
In August 2022, the Federal Communications Commission denied the SpaceX (Starlink) bid to receive $885 million over ten years through the Rural Digital Opportunity Fund (RDOF). The FCC went on to say in the order that there were several technical reasons for the Starlink rejection. Starlink appealed the FCC ruling. Current federal grant rules don’t allow federal subsidies to be given to any area that is slated to get another federal broadband subsidy. This has meant that the RDOF areas have been off-limits to other federal grants since the end of 2020.
Lobbying the Broadband Equity, Access, and Deployment (BEAD) Rules
Thirteen Republican Senators sent a letter to the National Telecommunications and Information Administration (NTIA) asking the agency to change its approach to administering some of the provisions of the $42.5 billion Broadband Equity, Access, and Deployment (BEAD) grants. The letter specifically asked for changes related to rate regulation, technology preference, provider preference, workforce requirements, middle mile deployments, and the application review process (You can read the letter here). It’s
Faster Speeds for Comcast
Comcast recently announced it is introducing a 2-gigabit download broadband product. Along with faster download speeds, Comcast is claiming new upload speeds of as much as 200 Mbps – at least for the 2 Gbps plan. The company made it sound like all upload speeds would be increased by five to ten times the existing speeds. Interestingly, the same announcement said that Comcast would be introducing DOCSIS 4.0 in 2023, at least for some business customers. That’s an announcement that has me scratching my head. Comcast just announced a successful test for DOCSIS 4.0 in January of 2022.
What’s The Trend for Broadband Prices?
For years, cable companies have been raising broadband prices annually. While price increases don’t hit every customer immediately because of customers on term contracts, every price increase reaches every customer eventually. The industry has changed, and it doesn’t seem as obvious as in the past that cable companies can raise rates and that customers will just begrudgingly go along with it. The cable companies have stopped growing. This seems to be for a variety of reasons.
Broadband Deserts
Broadband deserts beget population deserts as many in rural areas seek greener, high-speed broadband pastures. Counties with poor broadband are seeing people move away to get better jobs or to get broadband for their kids. Real estate agents are reporting that it’s extremely difficult to sell a home that has no broadband option. Several studies have shown that students that grow up without home broadband don’t perform nearly as well as students with broadband. There are hundreds of rural counties working hard to get fiber broadband with the hope of stemming the population loss.
The FCC Broadband Mapping Fabric
You’re going to hear a lot in the next few months about the Federal Communications Commission's broadband mapping fabric. This blog describes what that is and describes the challenges of getting a good mapping fabric. The first set of broadband map challenges will be about the fabric, and I’m not sure the FCC is ready for the deluge of complaints they are likely to get from every corner of the country. I also have no idea how the FCC will determine if a suggestion to change the fabric is correct because I also don’t think communities can count passings perfectly.