Joan Engebretson

President Donald Trump’s address about economic issues facing rural America at the American Farm Bureau Federation convention touched on Trump rural broadband initiatives. But although President Trump talked about the importance of broadband to the rural economy and signed two executive orders aimed at facilitating rural broadband deployment, I came away asking ‘where the beef’ was.

The Federal Communications Commission could vote as soon as Feb or earlier to reduce the speed required for an internet connection to be considered broadband for purposes of the FCC’s annual broadband progress report. If the FCC opts to change the definition of broadband in response to the Notice of Inquiry, it’s important to note that the changes should only impact the annual progress report and not the CAF program. 

Letters from rural carriers have been pouring into the Federal Communications Commission to urge the commission to close the broadband Alternative Connect America Cost Model (A-CAM) funding gap before the end of 2017. It was just about a year ago that more carriers than expected chose to participate in the A-CAM broadband program, which will pay part of a carrier’s costs to bring broadband to unserved areas based on a cost model.

Telecommunications and electric cooperatives are playing an important role in bringing high-speed broadband to rural America, according to a new report from the Community Broadband Networks Initiative at the Institute for Local Self-Reliance (ILSR). Using FCC data, researchers identified 87 cooperative gigabit deployments as of December 2016. The majority of the nation’s 260 telecom cooperatives have deployed fiber-to-the-home.  About 60 of the nation’s 900 electric cooperatives have deployed fiber, and that number is growing fast.

In recent years, cable companies have gained broadband market share against the telecommunication companies except in areas where the telcos have upgraded their traditional copper-based network infrastructure to support speeds competitive with the cablecos’ hybrid fiber coax-based service. But according to researchers at Moffett Nathanson, that’s set to change as telcos, particularly AT&T, get more aggressive about delivering faster broadband speeds.

[Commentary] With the Sprint T-Mobile merger called off, what’s next for the wireless carriers? Many saw the merger as the best move for Sprint, which has been struggling in a competitive wireless market. The merger was less critical for T-Mobile. But that company has been a disruptive force in the wireless industry and hasn’t been one to simply maintain the status quo.

As roughly half of US states consider a FirstNet opt out or opt in decision, considerable confusion has arisen about states’ options – confusion resulting, some say, from pressure tactics applied by FirstNet, the government entity created to administer the nationwide mobile broadband public safety network that carries the same name.

In its latest deal, TPG Capital is backing RCN’s $2.3 billion Wave Broadband acquisition. Wave Broadband will join TPG Capital’s cable and broadband portfolio, which also already includes RCN and Grande Communications – two operators that, like Wave, are focused on multi-play offerings including broadband and video in competition with incumbent telcos and cable companies. The combined company will be the nation’s sixth largest internet and cable operator. Bringing Wave, RCN and Grande together will create a regional market leader in next-generation, high-speed data services for residential and business customers with a presence spanning the West Coast, East Coast, Chicago and Texas. The $2.36 billion deal is expected to close in the second half of 2017.

Stakeholders know that because small cells will have shorter range, operators will need a dense fiber network to support them. Verizon CEO Lowell McAdam offered a sense of just how dense that network will need to be.

Verizon small cells and densification efforts are driving the deployment of 1700-strand fiber in Boston (MA), where the company is undertaking a major network upgrade, McAdam said. In comparison, he said, the company deployed six-strand fiber when it began deploying its FiOS landline broadband and internet service in the early 2000s. Verizon worked closely with its supplier Corning to get 1700 fiber strands in a single sheath, McAdam said, also noting that the company recently placed a $300 million order with another fiber supplier Prysmian. “The largest fiber network in the country will be wireless” and will be operated by Verizon to provide backhaul and other types of connectivity, said McAdam.

The Gigabit Opportunity Act, also known as the GO Act, aims to spur gigabit broadband deployment by using a range of tax breaks.

Sen Shelley Moore Capito (R–WV) said the GO Act “gives states flexibility, streamlines existing regulations and eliminates barriers to investment so we can better connect our low-income and rural communities.” The act calls for state governors to establish Gigabit Opportunity Zones that would be eligible for tax breaks including enabling companies to immediately expense the cost of gigabit-capable equipment and temporarily deferring capital gains for broadband investments and upgrades. It also directs the FCC to release a framework that encourages states, counties and cities to voluntarily adopt streamlined broadband laws, with which Gigabit Opportunity Zones would have to comply.

If this sounds familiar, that’s because the Gigabit Opportunity Act is based, in part, on a Gigabit Opportunity Zone proposal made by FCC Chairman Ajit Pai prior to his chairmanship. Not surprisingly, Chairman Pai issued a statement in support of the proposed legislation. The Gigabit Opportunity Act, he said, is “an important step toward closing the digital divide.” He added that “[w]ith targeted tax incentives and regulatory streamlining, the GO Act aims to remove the major barriers holding back internet access in economically challenged areas.” Some stakeholders argue, however, that while removing regulatory barriers and providing tax incentives can help spur broadband deployment, they are not a complete solution.