Daily Digest 10/10/2024 (Donald Leon Barlett)

Benton Institute for Broadband & Society
Table of Contents

Broadband Funding

Leading Connectivity: Two Years of the Broadband Infrastructure Program  |  Read below  |  Maci Morin  |  Press Release  |  National Telecommunications and Information Administration

State/Local

Governor Walz Announces $52 Million to Expand Broadband to nearly 8,000 Minnesota Homes and Businesses  |  Read below  |  Press Release  |  Minnesota Department of Employment and Economic Development
Municipal revenue bonds offer low cost way to fund fiber networks  |  Read below  |  Linda Hardesty  |  Fierce

Emergency Communications

FCC Waives USF, Broadband Program Rules in Response to Hurricane Milton  |  Federal Communications Commission
Editorial | FCC withdrew RDOF for Starlink to cover rural counties, but the company is now saving the day in those counties  |  Wall Street Journal
Disasters and the Supply Chain  |  Read below  |  Doug Dawson  |  Analysis  |  CCG Consulting

Ownership/Antitrust

SpaceX Wields Power Over Satellite Rivals to Boost Starlink  |  Read below  |  Emily Glazer, Dana Mattioli, Micah Maidenberg  |  Wall Street Journal
It looks like smooth sailing for Verizon/Frontier  |  Read below  |  Mike Dano  |  Light Reading
Biden’s Big Tech antitrust cases march ahead  |  Washington Post
Competition and the clock: how Google plans to deflect and delay a historic break-up threat  |  Financial Times

A.I.

California’s AI Safety Bill Is Dead, but the Regulation Debate Lives On  |  Wall Street Journal
OpenAI says bad actors are using its platform to disrupt elections, but with little ‘viral engagement’  |  CNBC

Elections 2024

Trump’s refusal, so far, to accept transition assistance creates ‘real risk,’ observers say  |  nextgov
OpenAI says bad actors are using its platform to disrupt elections, but with little ‘viral engagement’  |  CNBC

Platforms

Instagram and Threads moderation is out of control  |  Vox
The next big misinformation challenge: people want it  |  Politico

Devices

NCTA presses for 180-day phone unlocking rules  |  Light Reading

Policymakers

Lina Khan Is Just Getting Started  |  Bloomberg
Today's Top Stories

Leading Connectivity: Two Years of the Broadband Infrastructure Program

Maci Morin  |  Press Release  |  National Telecommunications and Information Administration

In 2022, the National Telecommunications and Information Administration (NTIA) launched the Broadband Infrastructure Program (BIP) to bridge the connectivity gap in unserved communities, including rural communities, in America. As the first grant program to launch under the Biden-Harris Administration’s Internet For All (IFA) Initiative, BIP has been leading the way with NTIA’s historic investment in broadband infrastructure, serving as a roadmap for other connectivity projects to follow. In 2022 NTIA awarded a collective $282.7 million to 13 states and one territory to expand broadband infrastructure. Since then, BIP awardees have made high-speed Internet service available to more than 40,000 previously unserved households, nearly 3,000 businesses, and more than 130 community anchor institutions (like schools and libraries).

Governor Walz Announces $52 Million to Expand Broadband to nearly 8,000 Minnesota Homes and Businesses

Governor Tim Walz (D-MN) announced $52 million in grants to expand broadband access to an estimated 7,700 homes and businesses throughout Minnesota. The grant awards will help broadband providers expand high-speed broadband service in 24 counties across Minnesota. The grants come from two Department of Employment and Economic Development (DEED) programs:

  • $25 million from DEED's flagship Border-to-Border Broadband Program, through which broadband provider grantees are reimbursed for up to half the eligible cost of deploying broadband infrastructure, with funding for a single project capped at $10 million.
  • $27 million from the Low Population Density Program, which offers grants to providers building broadband service to areas of Minnesota with particularly low population densities and high broadband deployment costs. The grants can be worth up to $10 million and cover up to 75% of the total cost of a project.

[See List of Border-to-Border Grantees by County and List of Low Population Density Grantees by County at the Link Below]

Municipal revenue bonds offer low cost way to fund fiber networks

Linda Hardesty  |  Fierce

Fletcher Kittredge, chief strategy officer at the service provider GWI, is an expert on financing public networks with municipal revenue bonds. Whereas a general obligation bond is secured by and paid for by taxes, a municipal revenue bond is secured by and paid for by the revenue of the network. And while incumbents may complain and even sue towns and cities that try to fund a broadband network with taxpayer money, incumbents don’t have that argument when it comes to municipal revenue bonds. Kittredge has worked with ECFiber, a municipal broadband network across 31 rural Vermont towns. ECFiber has received total bond commitments of $63.3 million. Private companies are also tapping revenue bonds for their financing. “Lots of private internet service providers have been securing their debt through revenue bonds,” said Kittredge. “If you look at all the different types of financing, bond financing—when backed by a revenue stream—is a lot cheaper than private equity or banks.”

Disasters and the Supply Chain

Doug Dawson  |  Analysis  |  CCG Consulting

One of the unexpected consequences of Hurricane Helene is that it disrupted and shut down the high-quality quartz mines near Spruce Pine, North Carolina. This will cause a temporary disruption for the semiconductor industry. One of the most important steps in making silicon chips and key components for solar panels is to melt down a highly purified substance called polysilicon. This can only be done in crucibles that don’t react with the polysilicon, and the best material for making the crucibles is the ultra-pure quartz that is mined at Spruce Pine. One of the key characteristics of supply chain disruptions is that they are most often a big surprise. There is nobody who could have imagined the disruption of mining for ultra-pure quartz in western North Carolina. I’m sure that the folks running that mine would have sworn that such an event was unthinkable. What we’ve learned in recent years is that almost nothing is unthinkable anymore.

SpaceX Wields Power Over Satellite Rivals to Boost Starlink

Emily Glazer, Dana Mattioli, Micah Maidenberg  |  Wall Street Journal

SpaceX has used its position as the world’s primary rocket launcher to push rival satellite operators to share wireless airwaves, showing how the company can flex its power in one area to benefit another part of its business. Apparently, SpaceX asked companies such as Kepler Communications and OneWeb to share their so-called spectrum rights with its Starlink broadband-internet business before agreeing to launch their equipment into orbit. Obtaining agreements to share spectrum is important for Starlink to provide clear links to its more than four million users as it expands service in markets around the world. Attorneys from one law firm, Wilson Sonsini, met with the Justice Department’s antitrust division in recent months to bring attention to these arrangements on behalf of some satellite and rocket companies. The goal was to discuss whether SpaceX is abusing its market power.

It looks like smooth sailing for Verizon/Frontier

Mike Dano  |  Light Reading

Verizon's $20 billion play for fiber network operator Frontier Communications likely won't encounter any major troubles from regulators or competitors, according to a handful of financial analysts. "Frontier will be acquired by Verizon," wrote the financial analysts at TD Cowen. "Following the T-Mobile Capital Markets Day, we see a lower probability of a topping bid for Frontier. Private investors are more likely to roll up smaller regional FTTH [fiber to the home] players, to then eventually sell to Big 3 carriers. We expect the deal to close as announced." Other analysts agreed that Verizon probably won't face opposing bids from T-Mobile, or anyone else, for Frontier.

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Benton (www.benton.org) provides the only free, reliable, and non-partisan daily digest that curates and distributes news related to universal broadband, while connecting communications, democracy, and public interest issues. Posted Monday through Friday, this service provides updates on important industry developments, policy issues, and other related news events. While the summaries are factually accurate, their sometimes informal tone may not always represent the tone of the original articles. Headlines are compiled by Kevin Taglang (headlines AT benton DOT org), Grace Tepper (grace AT benton DOT org), and Zoe Walker (zwalker AT benton DOT org) — we welcome your comments.


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